Crypto
New Arkansas laws regulate cryptocurrency mining
Gov. Sarah Huckabee Sanders has signed two laws regulating cryptocurrency mining in Arkansas, following months of outcry from lawmakers and their constituents.
Much of the push for mining regulation comes from a woman named Gladys Anderson. She lives next to a crypto mine in Bono, a neighborhood near Greenbrier. It’s a rural farming community, where residents say they woke up one day to hear a constant shrieking and humming sound coming from the mine.
Anderson lives closest to it, just a few hundred feet away. Her story has since gone national; speaking on CBS News, she called the noise “torture.”
The criticisms of these machines, which generate cryptocurrency like Bitcoin, fall into three buckets; they’re too loud, they’re bad for the environment, and they have foreign ownership ties that make a lot of people uncomfortable.
The Arkansas Legislature’s fiscal session, which formally adjourned last Thursday, was designed by law to focus only on budget matters. But, this year, lawmakers made an exception for this one issue.
One of the bills was championed by Sen. Joshua Bryant, R-Rogers, who explained his support for the legislation this way.
“Once they’re up and operating under existing ordinances/laws that they don’t just get arbitrarily or capriciously banned,” he said.
In the 2023 legislative session, Bryant sponsored a bill which later became Act 851. The law almost entirely deregulated the mines, prohibiting local governments from putting restrictions on them. Since then, there has been an influx of crypto mines in Arkansas and, with them, controversy about the noise and operations. Bryant says he doesn’t want to repeal that law.
“Repeal really wasn’t the option. What was the option was to create a state framework like we did with auto racing in the ’90s, with auto and gas compressors in the 2000s, to have some state oversight on this industry in order to control it when counties don’t want to step up and do it themselves,” he said.
Bryant says he just wants to give counties the power to regulate the mines, as well as the state if counties choose not to. He says he’s met with leaders in the crypto industry, and doesn’t think the practice is inherently bad. He wants to crack down on “one or two bad actors.”
“[If] they would have complied or been better neighbors a year ago, this wouldn’t have really be a conversation,” he said. “Because crypto mines have been operating in our state for over a decade.”
The first new law allows the mines to operate if they comply with noise ordinances. They have to be 2,000 feet from a residence and can’t be controlled by a “prohibited foreign party-controlled business.” The second new law subjects mines which break the rules to civil penalties.
One of the few lawmakers to vote against the bills was Rep. Andrew Collins, D-Little Rock. He doesn’t like the part of the bill that bans foreign ownership of the mines. There is some evidence tying crypto mining in general to the Chinese government.
Collins says this could be a slippery slope.
“We need to be very careful when we say that somebody can’t do something, or doesn’t have the right to either own property or exercise the right to make a living based on being in a category,” he said.
Collins asked Bryant, who sponsored one of the bills, about this during a committee meeting.
“Effectively, if you’ve got somebody from, say, Venezuela, and they are trying to move to America and they are trying to become a citizen and they are functioning within the confines of the law, completely innocent, no issue. They are not allowed to make an investment.”
Bryant didn’t share his concerns.
“If you come here and you open a facility here that uses our natural resources, that has potential cyber security threats to our grid and other entities, and you are connected to said grid, where do your loyalties lie and what will they be asking of you?”
Collins said he wanted to see better evidence than what he heard in Byrant’s answer. He also says the laws don’t actually address one of the biggest issues; they don’t turn down the noise.
“[The] only thing that a crypto mine operator has to do is apply noise reduction techniques,” Collins said. “They can be very ineffectual.”
One of the laws lists examples of things such as liquid cooling which could be used to keep the mines quiet. But, it doesn’t force the mine’s owners to turn the sound down. Bryant says he is enforcing an industry standard.
“A lot of my colleagues didn’t want the government to control the noise,” he said. “Some thought if you live in a county and the county does not want to pass any ordinances that require, as a whole, the community to mitigate their noise, why are we telling a business to do something that we are not telling everybody to do?”
Gladys Anderson, who lives next to the Bono crypto mine, said she doesn’t trust what Bryant says about the law. But, she says she is trying to remain positive about it.
Faulkner County passed an ordinance capping noise at 60 decibels, a level both Anderson and Little Rock Public Radio have measured the mines exceeding. She is joining with other residents in her community to sue over the noise. Bryant says, because of the new laws, she now has options.
“They’ve got 90 days to comply. I think it will solve the issue. If not, the state will have jurisdiction once the rules are promulgated, or the community of the surrounding neighbors will have standing in court to make sure they follow one of those noise mitigating procedures.”
An attorney representing owners of the Bono cryptocurrency mine did not respond to Little Rock Public Radio’s request for comment.
Crypto
UK investors sue Binance in London for £150 million
Crypto
Japanese Yen Sinks to 162.27, Its Weakest Since 1986, Reviving Intervention Bets
Key Takeaways
- The yen fell to 162.27 per dollar on June 30, its weakest level against the greenback since 1986.
- A wide rate gap, the BOJ at 0.75% versus the Fed’s 3.50%-3.75%, keeps pressuring the currency.
- Japan spent a record 11.73 trillion yen ($72.4 billion) on intervention from late April to late May.
A Four-Decade Low
The yen’s slide to a four-decade low has put Japanese authorities back on intervention watch. The currency has been dragged down by a persistent interest-rate gap between Japan and the United States, heavy speculative short positioning, and the limited staying power of Tokyo’s earlier efforts to prop it up.
The mechanics are straightforward given the Bank of Japan (BOJ) typically holds its policy rate at 0.75%, while the U.S. Federal Reserve’s target sits at 3.50% to 3.75%. That spread rewards investors who borrow cheaply in yen and park funds in higher-yielding dollar assets, a so-called carry trade that steadily pressures the Japanese currency.
Japan’s Finance Minister Satsuki Katayama signaled Tokyo’s readiness to act, saying the government was prepared to take appropriate action against excessive currency moves.
Intervention Has Already Failed Once
Tokyo has been here before and recently Japan launched its first yen-buying operation in nearly two years (after the currency punched through the politically sensitive 160 level). Authorities then spent a record 11.73 trillion yen, about $72.4 billion, defending the yen between late April and late May, only to watch it weaken again.
That track record is why traders doubt a fresh round would hold because the forces dragging on the yen are structural, rooted in the rate gap rather than short-term sentiment, and intervention can slow the slide without reversing it. Markets are now watching whether a move toward the 160-to-162 range triggers another defense from the finance ministry.
Where Does Crypto Fit Into All This?
A depreciating home currency has historically nudged some Japanese savers toward alternative stores of value, and bitcoin sits among them. Japan is one of the world’s most active retail crypto markets, and a yen losing ground against the dollar strengthens the argument that scarce, non-sovereign assets can hedge currency risk. Bitcoin priced in yen has tracked far higher than its dollar quote, mirroring the currency’s erosion over time.
The pressure also feeds into global risk appetite since a weaker yen can unwind carry trades suddenly when sentiment shifts, a dynamic that has spilled into crypto and equity markets before, sending leveraged positions scrambling.
In any case, the immediate question is whether Tokyo intervenes again or lets the slide run. With the rate gap unlikely to close soon, the Fed has held rates elevated while the BOJ moves cautiously. That said, the yen’s path ahead depends heavily on the next moves from both central banks and until that spread narrows, the currency’s weakness looks set to persist.
Crypto
Consumer alert issued for Bitcoin cryptocurrency ATMs
OHIO — The Ohio Department of Commerce Division of Financial Institutions issued a consumer alert on Monday for Ohioans who have used cryptocurrency ATM kiosks operated by Bitcoin Depot Inc.
The alert follows Bitcoin filing for bankruptcy last month in the U.S. Bankruptcy Court for the Southern District of Texas. Since the filing, it has shut down its ATM network, meaning consumers may be eligible for outstanding funds.
Bitcoin previously operated in 33 states, including Ohio, holding money transmission license number OHMT 263 with the division.
A Bitcoin ATM is a physical kiosk allowing people to buy or sometimes sell cryptocurrency, usually using cash or a debit card, but unlike a traditional ATM, it does not connect to a bank account. Instead, it transfers cryptocurrency to a digital wallet or an address the user provides.
“In the past year, Bitcoin Depot processed 10,637 individual transactions in Ohio across at least 50 machines,” the division said in a news release. “Any Ohioan who believes they may have been impacted by a scam involving these machines is encouraged to file a claim.”
There are 32 consumers who are owed a total of $90,907 in refunds, ranging from $18 to $43,000. These individuals will be contacted directly, but the division is calling attention to the situation to ensure any other Ohioan who used the service is aware of the potential refund.
Those who believe they are owed money, or who have an outstanding claim with Bitcoin Depot, can file a claim through the bankruptcy case. They can also call the company’s restructuring hotline at 844-339-4117 (Toll-Free U.S./Canada) or +1-332-232-7827 (International), or email BitcoinDepotInfo@ra.kroll.com.
Before filing a claim, consumers are encouraged to gather all recepts, transaction records and supporting documents.
For additional information, contact the Division’s Office of Consumer Affairs via email at web.dfi@com.ohio.gov or call 614-728-8400.
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