House legislation in Arkansas restricts cryptocurrency processing

Two legislation have been enacted by the Arkansas State House that would limit crypto mining in the state. These bills have not yet become laws, but they are laying the framework for future talks that might lead to enactment.

Legislators aimed to address broad issues such as noise mitigation, foreign ownership, and the closeness of cryptocurrency mining to residential areas at a Senate session on April 17.

Despite the Senate only passing one cryptocurrency-related measure last week, two of the eight proposals shared with the House on Wednesday were ultimately successful.

When it comes to whether or not Act 851 needs amending and, if so, how comprehensively,. During this or the next budget session, the relevant committees will deliberate on the subject and, if necessary, approve a legislation.

The purpose of the Arkansas Data Centers Act of 2023 is to establish standards for Bitcoin miners and shield them from unfair taxes and restrictions, as stated in the law. The state of Arkansas is located in the United States.

Bitcoin mining is criticised for the trash it produces due to its energy-intensive and time-consuming operation. Bitcoin mining generates more than 77 kilotons of electrical waste annually, according to Investopedia.

Legal issues related to cryptocurrency mining also exist in jurisdictions outside of the US. Paraguayan legislators have voiced concerns that illicit cryptocurrency mining is draining the country’s power supply and have introduced a measure to temporarily outlaw the practice.

The purpose of the proposed law is to make it illegal to engage in crypto mining or other activity related to the production, maintenance, storage, or trading of cryptocurrency.

Paraguayan senators have put a hold on the mining prohibition, so authorities are reevaluating the pros and cons of selling mining companies the extra electricity from the Itaipu hydroelectric facility.

The impending Bitcoin halving this week is putting pressure on miners. Markus Thielen, director of research at 10x Research, has predicted that in the months after the halving, miners may sell $5 billion worth of Bitcoin BTC.

“The impact of this sale might linger for four to six months, which would explain why Bitcoin could see a period of sideways movement in the coming months—similar to what has happened after previous halving,” he said.

Crypto markets may face “a huge struggle in a six-month ‘summer’ slowdown,” as Thielen put it, which means the same thing might happen again.

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