The Arkansas Senate has greenlighted a resolution introducing legislation to impose fees on crypto miners for excessive energy consumption, the Arkansas Times reported on April 15.
The proposed legislation introduces a tiered compensation structure for the emerging industry. Miners using 1MW to 2.49MW of energy would have to pay a $25,000 fee. For an energy consumption between 2.5 MW and 4.99 MW, the cost would be $50,000. Miners using 5MW to 10MW would have to pay a fee of $75,000, while those exceeding 10MW would pay $100,000.
Additionally, the legislation specified that the funds generated would be spent on agencies such as the State Securities Department, the Attorney General’s Office, and the Department of Energy and Environment. These agencies would use the funds for personnel services and operating expenses and oversee the digital asset mining operations.
Senator Bryan King is leading this move, with seven resolutions already securing the required two-thirds majority in the Senate.
The increasing challenge for miners as the halving approaches
Mining operations have attracted significant attention from both regulators and lawmakers due to their electricity-intensive operations, perceived impact on electricity grids and carbon emissions.
Pro-Bitcoin advocates such as the Texas Blockchain Council have advocated for alternative views on the energy consumption of Bitcoin mining, suggesting that Bitcoin miners are a net good for the energy grid due to their ability to adjust and limit demand, in unlike traditional data centers.
Arkansas’ legislative move thus joins a broader trend of governments tightening regulations on crypto mining.
For example, Norway recently introduced stricter rules for data centers, requiring registration and detailed disclosure of ownership and services. These rules indirectly affect Bitcoin miners by subjecting them to increased scrutiny.
Meanwhile, imposing stricter regulations and energy taxes on Bitcoin mining could have a lasting impact on the network, especially as it approaches its halving.
Bitcoin’s halving, which is expected to take place on April 20, would have a significant impact on crypto miners as block rewards will be reduced to 3.25 BTC. Bloomberg reported that this cut could lead to a loss of revenue of almost $10 billion per year for the industry.
The post New Legislation in Arkansas Points to Bitcoin Miners Introducing a Targeted State Fee appeared first on CryptoSlate.
