US State Passes Bill Protecting Bitcoin Mining Rights: Here Is All You Need To Know

The bill says it has been brought with the intention to create jobs, pay taxes, and provide general economic value to local communities.

The US State of Arkansas has passed a bill seeking to regulate Bitcoin mining and related activities in the House of Representatives and Senate. The bill gives miners and data centres the same rights and is now expected to be sent to the governor's office for further approvals. The Bitcoin mining protection bill is aimed at ensuring proper regulation in the Bitcoin mining sector all over America under the Arkansas Data Centres Act of 2023. It will help in framing guidelines for miners in order to give them full protection from all the discriminatory regulations and tax practices in the country.

Senator Joshua Bryant had introduced the bill on March 30 which was quickly passed. The bill says it has been brought with the intention to "create jobs, pay taxes, and provide general economic value to local communities. And it will be done by the data centres, reported CoinTelegraph.

The passed bill says that a digital asset miner is needed "to pay applicable taxes and government fees in acceptable forms of currency," as quoted by CoinTelegraph.

It further says that miners must work in a certain way in order to not cause any kind of pressure on the electric public utility generation abilities and transmission network.

Meanwhile, the miners will enjoy the same rights that the data centres have. The bill says that the government should not “impose a different requirement for a digital asset mining business that is applicable to any requirement for a data centre," reported CoinTelegraph.

However, Arkansas is not the first state to do so. In March, the state of Montana had also passed a bill aimed at protecting crypto miners within the state.

This particular bill was brought to ensure protection for crypto miners from taxes imposed on digital assets which are used for payment-related activities. It will also eliminate energy rates discriminating between home crypto buyers and digital assets business operations.

Earlier, on April 4, Texas passed a bill that will do away with the incentives for miners functioning in the state.

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