Arkansas Bitcoin Miners File Lawsuit Against State for Discrimination Against Chinese Operators
br>
On Wednesday, March 19, 2025, DL News reported that the Arkansas Cryptomining Association, representing Bitcoin miners in the state, has filed a federal lawsuit accusing Arkansas officials of discrimination against Chinese operators and their U.S. partners. The lawsuit targets the state, the attorney general, and the head of the Oil and Gas Commission, claiming that a recent law unlawfully discriminates based on national origin.
The controversy stems from a law enacted in Arkansas last year, which declared a state of emergency in response to concerns regarding Bitcoin mining’s impact on cybersecurity, noise pollution, and excessive resource consumption. This legislation prohibits individuals or entities from countries deemed “of particular concern” by the U.S. State Department—specifically including China—from owning or partially owning Bitcoin mining operations in the state.
Under the law, Chinese residents and individuals acting on their behalf are required to divest from any Bitcoin mining operations in Arkansas by May. This move reflects a broader trend in Washington aimed at limiting foreign-owned crypto mining facilities within the U.S. In a related action, the U.S. Department of the Treasury, in collaboration with the Department of Defense, expanded regulations to prevent these facilities from operating near sensitive military sites.
The issue has garnered significant attention, particularly since at least three Bitcoin mines in Arkansas have ties to Chinese investors, including one linked to a Shanghai real estate firm partially owned by the Chinese government. While several states have implemented laws restricting foreign ownership of land, it remains uncertain how many specifically address ownership of Bitcoin mines.
The Arkansas Cryptomining Association argues that the state law is “unconstitutional on its face,” claiming it discriminates based on race and national origin. The association is requesting a federal court in Little Rock to invalidate the law. In response to inquiries, a spokesperson for the Arkansas Oil and Gas Commission indicated that they are reviewing the lawsuit.
Public sentiment surrounding Bitcoin mining is increasingly polarized, with some communities opposing mining operations regardless of ownership. In Texas, for example, residents have protested against Bitcoin facilities due to their significant energy and water consumption as well as noise pollution. Similar concerns have emerged in Arkansas, where the law cites “continuous noise” from digital asset mining businesses as a threat to public peace, health, and safety.
Although the law does not explicitly mention China, comments from Arkansas lawmakers during the bill’s debate revealed its intent to target foreign adversaries. State Senator Josh Bryant stated that the legislation was designed to prevent countries like China from operating within Arkansas. Additionally, Governor Sarah Huckabee Sanders has expressed strong support for banning foreign adversaries from owning crypto mining operations in the state, emphasizing the protection of rural communities.
The lawsuit also highlights incidents of racism directed at Chinese-owned mining operations. NewRays One, one of the affected companies, has reported receiving racist remarks from local opponents, along with a county ordinance imposing stringent requirements on data centers, which they argue is discriminatory. A federal judge previously denied NewRays’ request for a temporary restraining order against the ordinance.
Conversely, another company, Jones Eagle, successfully obtained a temporary restraining order against Arkansas officials, protecting it from enforcement of the new laws. However, the Arkansas Oil and Gas Commission has continued to implement regulations affecting Chinese-owned mining facilities, leading to further legal challenges.
Source: DL News
