Two proposed bills in the Arkansas State House, if enacted, may limit cryptocurrency mining within the state. These bills are currently just approved measures, but they set the stage for possible future debates and potential creation of laws on this subject.
During a Senate hearing on the 17th of April, legislators aimed to discuss and find solutions for various issues including the lessening of noise levels, dealing with foreign ownership, and ensuring suitable distances between cryptocurrency mining operations and residential neighborhoods.
Two out of the eight proposals put before the House of Representatives on Wednesday were adopted, despite the fact that just one cryptocurrency-related bill was endorsed by the Senate the previous week.
There’s ongoing discussion among experts about whether to make changes to Act 851 and how extensive those modifications should be. The responsible committees will deliberate on this issue and could pass a new law during the present legislative session or the upcoming one.
The Arkansas Data Centers Act of 2023, as stated in the bill, aims to oversee Bitcoin mining operations within Arkansas, providing rules for miners while shielding them against biased legislation and taxes.
Bitcoin mining, which is a lengthy and power-hungry process, has drawn criticism due to the significant amount of electrical waste it creates. According to Investopedia, approximately 77 kilotons of electrical waste are generated annually through this practice.
In countries outside the US, crypto mining poses legal issues as well. For instance, legislators in Paraguay have suggested a temporary ban on crypto mining and related operations in this South American nation. They explained that clandestine crypto mines are siphoning off power and disrupting the electrical supply.
The new law intends to prevent the setup of crypto mining operations and transactions relating to the production, safekeeping, and exchange of cryptocurrencies.
Despite the mining ban facing a halt in Paraguay’s Senate, government officials are now exploring the potential advantages of selling surplus energy from the Itaipu hydropower plant to mining companies.
This week’s forthcoming Bitcoin halving is putting miners under immense pressure. As per the estimates of Markus Thielen, the head of research at 10x Research, miners might need to sell around $5 billion worth of Bitcoin (BTC) in the ensuing months post-halving.
“He expressed that the impact of this recent sell-off on Bitcoin’s price could persist for a period of four to six months. Consequently, Bitcoin may continue moving laterally for some time – a pattern observed after previous halvings.”
Thielen stated that the crypto markets may encounter a similar issue once more, possibly experiencing a “challenging six-month period during the summer.”
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2024-04-18 11:58