United States of America: Adopted amendment to Arkansas Data Centers Act of 2023 to Prohibit Foreign-Party of Controlled Ownership of a Digital Asset (SB 78)

On 1 May 2024, the Arkansas legislature adopted an amendment to the Arkansas Data Centers Act of 2023 to Prohibit Foreign-Party of Controlled Ownership of a Digital Asset (SB 78) after it was approved by both legislative chambers. The amendment has been sent to the Governor for approval. The amendment prohibits foreign-party-controlled businesses from owning digital asset mining operations in the State. The Bill defines "prohibited foreign-party-controlled business" as any entity with any ownership interest by a prohibited foreign party, including individuals or entities from countries subject to certain US regulations. Compared to the introduced version, the threshold for the prohibition is set at a lower percentage of ownership interest.