- Senators Warren and King believe that Iran’s crypto mining profits raise national security concerns
- Arkansas lawmakers have passed a bill regulating crypto mining
With Bitcoin well behind the industry, all eyes are now on miners and the ripple effects on crypto mining worldwide. At the forefront of this discussion is Iran, a country that has a history of facilitating mining services and has used crypto mining to circumvent global sanctions.
According to US Senators Elizabeth Warren and Angus King, “Iran has raised millions of dollars through crypto mining.”
The senators’ letter highlights the concerns
In a joint letter written by Warren and King, the senators have now sought clarification on the Biden administration’s plans to crack down on Iran’s use of cryptocurrency mining to evade US and international sanctions. According to lawmakers,
“This continued activity by the Iranian government threatens our national security.”
They added:
“Cryptomining has become increasingly lucrative for Iran. Between 2015 and 2021 Bitcoin mining has funneled more than $186 million into Iranian crypto platforms, most of it in 2021.”
Arkansas’ passage of new bills
Crypto mining is not just an international problem. It has also been in the news a lot in our own country lately. In fact, Arkansas lawmakers have now passed two bills regulating cryptocurrency mining. The decision comes amid criticism of noisy operations, excessive water and electricity consumption, and cybersecurity risks associated with foreign ownership.
Senate Bill 78 imposes noise limits and ownership restrictions on crypto mines, while empowering local governments. On the other hand, Senate Bill 79 issues state permits through the Oil and Gas Commission.
These bills are intended to correct perceived deficiencies in the Arkansas Data Centers Act of 2023 (Law 851), which previously prevented local supervision of crypto mining. Despite being smoothly passed in 2023, Law 851 was criticized from some quarters for being regulatory inadequate.
The legislators’ debate
Lawmakers, recognizing their oversight, responded by passing these new bills, marking a notable legislative development during a budget session. It’s worth pointing out, hhowever, that Rep. Tippi McCullough during the debate between lawmakers asked:
“Is the bill required to list specific types of noise reduction, or could it be opened up to putting some cotton balls outside the walls and saying, ‘we tried to reduce the noise.’”
Senator Joshua Bryant responded:
“The bill should be read to mean that noise reduction should be as effective as these methods.”
However, not everyone agreed with the scope of these bills, with some expressing reservations while others argued that this is only a temporary solution until something permanent is legislated.
Needless to say, despite it being almost a month after the halving, miners still have a lot on their minds. Both on a national and international level.