The Arkansas Senate has approved a resolution proposing legislation to levy fees on crypto miners for their excessive energy consumption, as reported by the Arkansas Times on April 15.

The proposed legislation introduces a tiered fee system for the burgeoning industry. Miners using between 1 MW and 2.49 MW of energy would be subject to a $25,000 fee. Energy consumption ranging from 2.5 MW to 4.99 MW would incur a fee of $50,000. Miners utilizing 5 MW to 10 MW would face a $75,000 fee, while those exceeding 10 MW would be required to pay $100,000.

Additionally, the legislation outlines that the funds generated would be allocated to agencies such as the State Securities Department, the Attorney General’s office, and the Department of Energy and Environment. These agencies would utilize the funds for personnel services, operational expenses, and oversight of digital asset mining businesses.

Senator Bryan King is leading this initiative, with seven resolutions having already garnered the necessary two-thirds majority in the Senate.

As the halving event approaches, miners face increasing challenges. Mining activities have drawn regulatory scrutiny due to their high energy consumption, purported strain on power grids, and carbon emissions.

While proponents of Bitcoin, like the Texas Blockchain Council, argue that miners benefit the energy grid by managing demand unlike traditional data centers, Arkansas's legislative action reflects a broader trend of governments tightening regulations on crypto mining.

Norway, for example, recently imposed stricter regulations on data centers, requiring registration and detailed disclosure, indirectly affecting Bitcoin miners by subjecting them to heightened scrutiny.

Implementing stricter regulations and energy taxes on Bitcoin mining could have a lasting impact on the network, particularly as it nears the halving event. Expected to occur on April 20, the halving will significantly affect crypto miners by reducing block rewards to 3.25 BTC, potentially resulting in an annual revenue loss of nearly $10 billion for the industry, as reported by Bloomberg.