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.
Summary
SR 9 is a Senate resolution authorizing the introduction of a nonappropriation bill that would restrict digital asset mining in Arkansas. The underlying bill would amend the Arkansas Data Centers Act of 2023 to define “covered foreign entity” by reference to federal screening lists and by ties to the People’s Republic of China or the Russian Federation, including entities controlled by or affiliated with those governments. It would then prohibit digital asset mining businesses and home digital asset miners from using computers manufactured or assembled by such entities, as well as software developed by such entities.
The bill also establishes criminal penalties for violations. A first offense would be a Class A misdemeanor, and a second or subsequent offense would be a Class D felony. In practical terms, the measure would add a foreign-entity sourcing restriction to the state’s regulation of crypto mining equipment and software, affecting miners, data centers, equipment suppliers, and software providers operating in Arkansas.
Impact
If enacted, the bill would amend Arkansas Code Title 14, Chapter 1, Subchapter 6, expanding the Arkansas Data Centers Act of 2023 with a new definition of “covered foreign entity” and a new prohibition on certain hardware and software used in digital asset mining. It would create a compliance obligation for both commercial and home miners to avoid equipment and software linked to specified foreign entities, and it would expose violators to criminal penalties. The bill died in the Senate at sine die adjournment, so it did not change state law.
Sentiment
The available record suggests the bill was framed as a security- and supply-chain-focused measure rather than a broad crypto policy change. Because there are no committee transcripts or recorded votes, there is no detailed public debate in the provided materials. The bill’s introduction and drafting indicate support for limiting foreign involvement in digital asset mining infrastructure, but the lack of recorded action beyond introduction and its eventual death at adjournment means there is no evidence of sustained legislative momentum.
Contention
The main point of contention is likely the breadth of the foreign-entity definition and the practical burden on digital asset miners to verify the origin of both hardware and software. The bill reaches beyond direct ownership to include entities on federal lists, entities domiciled in China or Russia, and subsidiaries or affiliates, which could raise compliance and enforcement questions. Another likely issue is the criminalization of violations, including felony exposure for repeat offenses, which may be viewed as a strong deterrent by supporters and as overly punitive by critics. No specific objections or supporters are identified in the provided record.