Arkansas foreign Bitcoin mining ownership law stays blocked as appeals court weighs case

Arkansas wanted to keep certain foreign-controlled companies out of its Bitcoin mining industry. For now, the federal courts are keeping that plan on the shelf. The state’s restrictions on foreign ownership of digital asset mining operations remain blocked. The US Court of Appeals for the Eighth Circuit is deciding whether that block should stay in place. What the Arkansas law does The fight centers on two state laws: Act 636 from 2023 and Act 174 from 2024. Together, they bar businesses controlled by foreign parties tied to countries on the US International Traffic in Arms Regulations list from holding interests in local digital asset mining enterprises. Act 174 took effect in May 2024. It specifically prohibits foreign-party-controlled businesses from acquiring interests in digital asset mining operations. The challenge came from Jones Eagle LLC, a company run by Qimin “Jimmy” Chen. Chen is a naturalized US citizen who was born in China. His company argues the Arkansas laws are preempted by federal law covering foreign affairs and foreign investment. How the case got here Jones Eagle won the early rounds. Federal District Judge Kristine G. Baker issued a temporary restraining ord...