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On Friday, April 7th, the state of Arkansas passed a new bill aimed at protecting the rights of cryptocurrency miners. The new piece of legislation seeks to properly define digital assets, and the data centers used for their mining, and to protect the rights of those wishing to engage in digital asset mining provided they comply with existing state laws.
Arkansas Passes Bill Aimed at Protecting Cryptocurrency Miners
This Friday, Arkansas passed a bill aimed at defining what constitutes a cryptocurrency miner, as well as at defining their rights and obligations. According to the document, the state will not place limits on such operations, provided they do not violate any of the existing state laws.
Additionally, the bill acknowledges both the importance of blockchain as a technology and the increasing proliferation of digital assets throughout America. The bill is currently awaiting the Governor’s signature. Arkansas is the latest of several US states to have passed a bill aimed at protecting the rights of cryptocurrency miners.
Late February and early March saw two similar bills passed in Missouri and Montana. Furthermore, the state of Wyoming passed a bill seeking to protect digital asset holders’ rights to privacy by protecting their private keys in all cases except when data crucial for an investigation can’t be obtained in any other way.
Individual States Lead the Way as Federal Government Lags Behind With Crypto Regulation
While multiple individual states have been making strides in establishing legal frameworks for digital assets, the Federal Government has been dragging its feet on the matter. Already in January, the White House called on Congress to increase its efforts with regard to regulating cryptocurrencies but hinted at its own hawkish stance by commending agencies like the SEC that have been notably hostile toward the industry.
The current gap with regard to a legal framework tailored to blockchain technology has created an uncomfortable situation where many have accused financial watchdogs of attempting to legislate through enforcement actions. Perhaps most notably, the SEC Commissioner Hester Peirce called her own agency “lazy and paternalistic” for engaging in such behavior after the $30 million settlement with Kraken was announced.
Voices from within the industry have repeatedly called on lawmakers to do more to foster a healthy industry within the United States and several notable companies like Paxful have departed the market citing “regulatory uncertainty”. For his part, SEC’s Gary Gensler has repeatedly stated that cryptocurrency can fully be governed by existing laws.
Do you think the US Government will ever introduce nationwide laws guaranteeing the rights of cryptocurrency miners? Let us know in the comments below.