The Arkansas State Senate passed two bills to ban cryptocurrency mining. However, these bills have not yet matured into a fully-fledged legal system or policy; nevertheless, they become the foundation for future debates, which can lead to more potential laws.
Arkansas environmental concerns and global perspectives
In a Senate session held on April 17, senators asked questions about battle strategies, including noise reduction, foreigners’ interests, and the location of crypto mines concerning residential living.
Two of the eight bills presented by the House today succeeded in passing, even though the House only approved one bill last week that focused only on cryptocurrencies.
The debate is at the center of the current debate about whether to refine Act 851 and what details to refine. The committees will discuss the draft law before the General Assembly passes it at this fiscal session or the next one.
Implications for Bitcoin halving
It reports about the Arkansas Data Centers Act of 2023, which is responsible for the Bitcoin mining activity in the state and sets regulations for the miners against any discriminatory acts at the state and federal levels. However, it is criticized for being a carbon-intensive and wasteful process. Investopedia says that due to the large scale of energy consumption for the Bitcoin mining process, over 77 kilotons of electronic waste is generated annually.
Crypto mining presents challenges abroad and extra-legal problems. Paraguay lawmakers are considering temporarily suspending ‘crypto mining activities’ because irregular crypto mines have drawn this country’s electricity without permission.
The law has been proposed to be enforced for the new legislation, which principally targets the construction of facilities and activities regarding creating, maintaining, storing, and exchanging cryptocurrencies.
However, Paraguayan senators have slowed this trend, and some now propose that the country supply mining firms with excess energy generated by its highly efficient hydropower plant.
Some miners are dealing with this week’s upcoming Bitcoin halving, which puts pressure on their operations. Markus Thielen, the head of 10X Research, says the institution is ready to sell as many as $5 billion of its mined Bitcoins within a month of the halving.
Accordingly, Cantillon thinks that to continue the price formation of Bitcoin following the halvings, this performance will be like an umbrage of selling that would likely last for four to six months. This will denote the sideways movement of Bitcoin and will also explain why it has been like this in the past.
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