A Republican state lawmaker is raising questions about cryptocurrency mining operations across Arkansas.

Sen. Bryan King, R-Green Forest, is planning to sponsor legislation to regulate crypto mines— large groups of computers used to harvest cryptocurrency. They can take up a space roughly the size of a football field, and are mainly located in rural parts of the state. There are currently mines in Faulkner County, Dewittand on the outskirts of Greenbrier.

“They’re popping up faster than mushrooms after a summer rain,” Sen. King told Little Rock Public Radio.

The mines can be incredibly loud, and residents who live near them say they threaten their quality of life. A lawsuit is currently underway in Greenbrier over the loudness of the mines. Neighbors say simple activities like milking their cows or sitting on the front porch have become unbearable. A woman who lives near the mines with her autistic son says the noises are too loud.

There is no evidence Arkansas’ mines specifically fund overseas terrorism, but a government report recently linked cryptocurrency to the Palestinian Islamist group Hamas. Some politicians are also squeamish about their unclear ties to the Chinese government.

Other reports show negative environmental impacts from the energy they require and their possible negative effect on local wildlife.

“There are so many injustices about this bill,” King says, referring to a law passed last year to prevent regulation of crypto mines and other data centers.

King said he wished he had known about these concerns when it passed.

“It passed in the ‘banana republic’ phase of the session,” he said, referencing the last few days of the 2023 legislative session where several bills were passed quickly or batched so that many bills could be voted on at once.

The crypto mine law, Act 851, moved through the legislature quickly with almost no discussion. King says members the House and Senate were “misled” about the mines.

“This is a prime example of how something can slip through,” he said.

King says he reached out to Gov. Sarah Huckabee Sanders’ staff about passing regulations, but they were not receptive.

He wants to know more information about what crypto mines do and who they are connected with. He thinks from a regulatory standpoint, they should “be treated like everybody else.” As a farmer, he says he faces more regulations on his chicken coops than crypto mines do.

Legislative hearing

The Arkansas Senate Children and Youth Committee met Thursday to talk about crypto mining. They were joined by Colin Read, the former mayor of Plattsburgh, N.Y., and now works as a professor. Read said a mine in his town had negative results. Before it was built, he said the mines’ owners made empty promises.

“Miners send in waves of lobbyists,” Read says. “Promises are made to local officials that hundreds of jobs will be created.” He said they manipulate the tax code and try to convince city councils they will be good for the economy.

“We had one of the largest bitcoin mines in the world at that time. It generated millions of dollars of revenue for its owners every single month. It essentially became the biggest profit center in an entire city,” Read said. “And it annoyed its neighbors 24/7, because of the huge fans used to dissipate all the heat generated. And yet our tax base did not expand at all.”

Read said McDonald’s employs more workers and adds more to the city’s tax base than the mines. He said these companies often rent the land occupied by the mines in order to pay less in real estate costs. Overall, he said he finds the companies behind the mines “mysterious” and difficult to connect with.

Sen. King said he invited supporters of the mines to speak at Thursday’s meeting, but none showed up. He also says he reached out to Gov. Sarah Huckabee Sanders’ staff before proposing a bill to regulate the mines. He says they were “not receptive.”

The governor’s spokeswoman Alexa Henning gave this statement.

“The Governor will continue to protect the safety of Arkansans, fight back against China buying up our land, and encourage Arkansas businesses to be good neighbors.”