TO AUTHORIZE THE INTRODUCTION OF A NONAPPROPRIATION BILL TO PROHIBIT THE USE OF A COMPUTER MANUFACTURED BY A COVERED FOREIGN ENTITY IN DIGITAL ASSET MINING AND PROHIBIT THE USE OF CERTAIN SOFTWARE IN DIGITAL ASSET MINING.
HR1010 is a House Resolution authorizing introduction of a nonappropriation bill that would amend the Arkansas Data Centers Act of 2023 to restrict digital asset mining activities involving foreign-controlled technology. The underlying bill would define “covered foreign entity” to include certain entities on federal screening lists, entities domiciled in China or Russia, entities controlled by those governments, and their subsidiaries or affiliates.
The proposed substantive law would prohibit digital asset mining businesses and home digital asset miners from using computers manufactured or assembled by a covered foreign entity, as well as software developed by a covered foreign entity. It would also create criminal penalties for violations, making a first offense a Class A misdemeanor and a second or subsequent offense a Class D felony.
If enacted, the measure would add new definitions and a new prohibition to Title 14, Chapter 1, Subchapter 6 of the Arkansas Code, directly affecting digital asset mining businesses and home miners operating in the state. It would expand the Arkansas Data Centers Act of 2023 by imposing technology-source restrictions tied to foreign entities and by creating misdemeanor and felony penalties for noncompliance.
The bill appears to reflect a security- and foreign-policy-oriented approach to regulating cryptocurrency mining technology, with the text suggesting concern about equipment and software linked to China, Russia, or other federally designated entities. There is no recorded committee transcript or vote history in the provided materials, and the bill ultimately died in House Committee at sine die adjournment, so there is no documented floor-level debate or recorded vote sentiment available here.
The main point of contention likely would be the breadth of the “covered foreign entity” definition and the practical burden on miners to verify the origin and ownership/control of hardware and software. Another likely issue is the criminal penalty structure, which escalates from a misdemeanor to a felony for repeat violations, potentially raising concerns about enforcement, compliance costs, and the impact on Arkansas’s digital asset mining industry. Because no committee transcript is provided, the specific arguments for or against the bill are not documented in the available record.