Military Installations vs. Crypto Mines: Arkansas Introduces Bold Bill SB 60

• SB 60 proposes a 30-mile crypto mining exclusion zone around Arkansas military facilities, citing security and environmental issues.
• Existing crypto mining facilities operational before December 31, 2024, are exempt under the bill’s grandfather clause.
• The legislation echoes federal actions against foreign-linked crypto mining near U.S. military bases, highlighting ongoing regulatory efforts.

Arkansas lawmakers are taking a significant step toward regulating the proximity of cryptocurrency mining facilities to military installations. Senate Bill 60 (SB 60), introduced by Senator Ricky Hill and House Speaker Brian Evans on January 15, seeks to amend the Arkansas Data Centers Act of 2023.

If passed, the bill will prohibit crypto mining operations within a 30-mile radius of military bases, camps, hospitals, clinics, and arsenals across the state. The proposed legislation includes a grandfather clause, allowing facilities fully constructed and operational before December 31, 2024, to continue operations.

Noise Pollution and National Security Concerns

The bill follows resident complaints about noise disturbances and pollution from crypto mining facilities. Cabot Mayor Ken Kincade emphasized that such operations affect people, pets, wildlife, and the environment. He highlighted local concerns surrounding a new mining facility near the Little Rock Air Force Base in Cabot, owned by Interstate Holdings.

 he facility, located less than five miles from the base, has sparked debates on national security and community impact. Senator Ricky Hill, speaking in December, questioned the decision to site a mining facility near the airbase. He expressed concerns over potential risks to national security, given the proximity to sensitive military infrastructure.

Response From Crypto Mining Operators

Interstate Holdings Vice President Dustin Curtis voiced opposition to SB 60, arguing that the proposed restrictions are unprecedented. Curtis noted that the Cabot facility adheres to state and federal regulations on noise, environmental impact, and security. He also claimed that the facility’s decibel levels are lower than those of a nearby highway.

Previous Regulatory Actions

The Arkansas bill bears similarities to federal actions against foreign-linked crypto mining near military sites. In May, the Biden administration barred a China-linked mining firm from operating near Francis E. Warren Air Force Base in Wyoming. Additionally, Arkansas has seen selective enforcement of noise regulations, with Bitcoin mining firm NewRays alleging unfair targeting in October.
If passed, Arkansas would become the first state with crypto mining restrictions based on proximity to military facilities. The bill reflects ongoing concerns about the environmental and security implications of the crypto mining industry.