The Arkansas Senate has approved a resolution to introduce legislation that would impose fees on cryptocurrency miners for excessive energy consumption, as reported by Arkansas Times on April 15.
The proposed legislation would establish a tiered fee structure for the growing industry. Miners using 1 MW to 2.49 MW of energy would be charged $25,000. Energy consumption between 2.5 MW and 4.99 MW would incur a fee of $50,000. Miners utilizing 5 MW to 10 MW would face a $75,000 fee, and those exceeding 10 MW would pay $100,000.
Additionally, the legislation outlined that the funds collected would be allocated to agencies such as the State Securities Department, the Attorney General’s office, and the Department of Energy and Environment. These agencies would utilize the funds for personnel services, operating expenses, and overseeing digital asset mining businesses.
Senator Bryan King is leading this initiative, with seven resolutions already garnering the necessary two-thirds majority in the Senate.
Mining operations have come under scrutiny from regulators and lawmakers due to their high energy consumption, alleged impact on power grids, and carbon emissions.
Some pro-Bitcoin advocates, like the Texas Blockchain Council, argue that Bitcoin miners actually benefit the energy grid by being able to adjust demand, unlike traditional data centers.
Arkansas’s legislative move reflects a larger trend of governments around the world tightening regulations on cryptocurrency mining.
For example, Norway recently implemented stricter rules for data centers, requiring registration and detailed disclosure of ownership and services, indirectly affecting Bitcoin miners by increasing scrutiny.
The introduction of stricter regulations and energy taxes on Bitcoin mining could have a lasting impact on the network, especially as it approaches the halving event.
The upcoming Bitcoin halving event, scheduled for April 20, will reduce block rewards to 3.25 BTC, potentially causing the industry to lose nearly $10 billion in revenue annually, according to Bloomberg.
