Arkansas Town Blocks Crypto Mining as Pollution Fears Spur Nationwide Crackdown

Arkansas Bitcoin Crypto Regulation

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Jimmy Aki

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Jimmy Aki

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Jimmy has nearly 10 years of experience as a journalist and writer in the blockchain industry. He has worked with well-known publications such as Bitcoin Magazine, CCN, and Blockonomi, covering news...

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April 24, 2025

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On April 25, Vilonia’s planning commission rejected a cryptocurrency mining facility proposal. Residents had protested for weeks, arguing the operation would bring unbearable noise, drain local energy supplies, and harm the environment.

Could Arkansas Spark a Nationwide Crypto Mining Crackdown?

Residents cautioned that the steady hum of cooling fans and surging energy needs threaten to erode the town’s calm and drive up utility bills.

One of the residents stressed that they had moved to the city seeking peace rather than Bitcoin.

Vilonia, an affluent Arkansas town, boasts a median household income exceeding $80,000 (2023), well above the state average. Its high homeownership rates and growing population reflect a thriving community. However, the town’s energy infrastructure has put the community on the map.

Bitcoin miners are eyeing the town thanks to its proximity to an Entergy substation and surplus energy capacity. For an industry hungry for power, Vilonia’s grid is a goldmine.

The latest mining rejection continues Vilonia’s firm stance against crypto mining. In 2023, commissioners denied Vilo AR’s permit to establish a crypto mining facility in the town. This isn’t just small-town resistance. It’s part of a growing statewide crackdown.

State lawmakers have also moved to rein in crypto mining.

Arkansas lawmakers passed two bills in 2024, tightening restrictions on crypto mining operations.

Legislators also introduced a measure to ban mining facilities within 30 miles of military bases. However, the Senate’s City, County, and Local Affairs Committee later shelved it.

The backlash stretches far beyond Arkansas. From Texas to Pennsylvania, communities are pushing back against what they see as industrial intrusions.

In Granbury, Texas, residents took their fight to court last October, suing Marathon Digital over what they claim are health impacts from nonstop mining noise.

Their lawsuit details complaints ranging from chronic headaches to hearing damage, putting numbers to the human cost of 24/7 operations.

This led to the passing of a Public Utilities Commission of Texas (PUCT) rule in November 2024 requiring Bitcoin miners on the Energy Reliability Council of Texas (ERCOT) grid to register facilities within one working day, disclose locations, ownership, power demands, and renew registration annually by March 1.

As Vilonia reaffirms its no-mining policy, crypto ventures will likely seek locations with fewer community and regulatory hurdles.

Can Federal Rules Stop Crypto Mining Pollution From Spilling Across State Lines?

The health and environmental fears of industrial Bitcoin mining have intensified after a peer-reviewed study in Nature Communications revealed that U.S. mining sites emit harmful fine particulate matter (PM2.5) across state lines, exposing 1.9 million Americans to elevated pollution levels.

Researchers led by Dr. Francesca Dominici analyzed the top 34 mining facilities from August 2022 to July 2023. They found that the facilities consumed 32.3 terawatt-hours of electricity, 33% more than the city of Los Angeles, with 85% derived from fossil fuels.

Exposure hotspots span New York City, the Houston–Austin corridor, northeast Texas, and the Illinois–Kentucky border.

In Metropolis, Illinois, residents inhale PM2.5 from a Kentucky power plant powering a North Carolina Bitcoin mine.

This cross-border pollution exposes a regulatory blind spot since state agencies can’t curb emissions originating elsewhere.

Authors recommend that the EPA enforce a “Good Neighbor” rule to compel upwind states to tighten power-plant controls.

Legal and policy actions accompany these issues. In March 2024, Save Carbon County sued Stronghold Digital Mining under Pennsylvania’s constitutional right to a clean environment over waste-coal and tire-burning operations for electricity generation.

Globally, the IMF reported in August 2024 that cryptocurrency mining consumes 2% of total electricity and proposed an 85% tax on mining power to raise $5.2 billion annually.

How Tariff Policies Threaten U.S. Bitcoin Mining Expansion

Environmental worries and local restrictions aren’t the only challenges facing the U.S. crypto mining sector.

American firms, responsible for over 40% of the global hash rate as of 2024, could face hefty tariffs on imported rigs.

Under President Trump’s trade policy, Bitcoin-mining machines from Thailand, Malaysia, and Indonesia may face up to 36% in tariffs, though a temporary 90-day reprieve has kept duties at 10% for now.

Since the tariff announcement on April 2, a mining-firm index has dropped 12%, outpacing the S&P 500’s 8% decline.

Companies are rushing to import equipment before the July deadline, while some, like Synteq Digital, scout overseas sites.

Compass Mining remains committed to U.S. expansion but calls for swift tariff clarity. This uncertainty threatens billions in investment needed to sustain and grow domestic Bitcoin-mining infrastructure.

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