Monday, June 5, 2023

Mining bitcoin and cryptocurrencies is already the law in this US state

The governor of the state of Arkansas in the United States, Republican Sarah Huckabee Sanders, signed Bill 1799 that protects the mining of bitcoin (BTC) and cryptocurrencies in that region. This means it can be legally mined, as it is a right of way in that southern state of the North American country.

As noted in a press release by the Arkansas Governor’s Office, the official signed the Arkansas Data Center Act of 2023 on Thursday, April 13. From that moment on, it is a law that governs the jurisdiction of that institution.

This was the missing step to legislate. Above, noting that the project was approved by the lower house and the Arkansas Senate on April 7th, as reported by Cryptonoticea.

This law states that operators can start mining bitcoin and other digital assets legally in Arkansas. But as long as they meet the established legal requirements for commerce as well as financial commitments to that entity.

In turn, the law allows for small-scale cryptocurrency mining and from homes. In devoting yourself to it, all you have to do is follow established guidelines around the payment of fees for public service. That is, electricity, as shown by the new law.

The decree already signed by Governor Huckabee Sanders also indicates that discrimination against virtual asset mining businesses is prohibited in Arkansas. This, as long as the established obligations are not violated.

Bitcoin mining-friendly US regions are on the rise

With this new legislation, there are already two regions of the United States that are moving into legislation in favor of bitcoin and other cryptocurrencies mining.

As Cryptonoticia reported in recent days, the lower house of Montana in North America has approved a bill that grants bitcoin rights to that entity. The said proposal is only awaiting the signature of Governor Greg Gianforte to come into force.

However, the two states disagree over the reality of Texas being in the southern United States. In this area, a bill that seeks to limit incentives for bitcoin miners is moving along smoothly.

This document is two steps away from becoming a mandatory law. And that has caused an uproar in the Texas mining community, which has already railed against that regulatory proposal. They say the legislation could jeopardize the state’s energy security.

The approval for and against the mining of the virtual asset comes in a context in which the United States is still emerging as the country with the highest hash rate for processing transactions on the bitcoin network.

According to data from the University of Cambridge, the US currently accounts for 37.8% of the global bitcoin hashrate. This is nothing more than the result of the presence of large mining companies that make life in the North American country.

Texas, Arkansas, and Montana are precisely three areas where many of these mining companies have set up operations, as they take advantage of the energy production in those places to start their mining farms.

Therefore, regulatory movements in these US regions may have some impact on mining activity. Predictably positive, as everything points to a steady rise of mining-friendly states.

Nation World News Desk
Nation World News Desk
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