When faced with resistance from crypto mining critics in various states, Cyndie Roberson frequently shares a video clip from a hearing held by the Georgia House Banks and Banking Committee regarding the Blockchain Basics Act. She believes this footage demonstrates that with proper information, lawmakers are likely to dismiss attempts to facilitate crypto mining in their jurisdictions. A retired nurse and currently the vice president at Children’s Healthcare of Atlanta, Roberson became a staunch opponent of crypto mining after her and her husband’s plans for a peaceful retirement cabin in Cherokee County, North Carolina, were disrupted by the incessant noise from a nearby crypto mining facility, prompting them to sell their property shortly thereafter. During this time, Roberson joined a local movement against the crypto mining boom in the region and now serves on the board of the National Coalition Against Crypto Mining.
Recently, fourteen neighboring counties, nine in North Carolina and five in Georgia, have enacted regulations or outright bans on crypto mining, including Cherokee County itself. Crypto mining, which relies on data centers that demand substantial electrical power and utilize large, noisy fans for cooling, raises several concerns that will be the subject of ongoing discussions in the coming years. The noise created by these operations can serve as a significant flashpoint for community opposition, reminiscent of the disruptive sound of gas-powered leaf blowers on a weekend morning.
Efforts to pass the Blockchain Basics Act, which aimed to prevent local authorities from regulating crypto activities, offering tax incentives, and fostering the growth of the crypto industry, were ultimately thwarted by widespread opposition. However, it is anticipated that many components of the legislation will resurface in the near future. A separate Senate proposal introduced at the conclusion of this year’s session seeks to enable state investments in Bitcoin and facilitate other avenues for crypto growth.
“To maintain our competitive edge, it is essential to modernize our regulatory framework. This includes updating legislation to align with the current economic landscape, ensuring legal clarity for emerging technologies, and holding irresponsible operators accountable while not penalizing those who build responsibly,” stated Tony Erwin, a principal consultant at Skyrocket Financial Solutions, in a recent publication of James magazine.
Blockchain Basics bills, often referred to as Right to Mine bills, have been put forward in various states across the nation. While they vary in specifics, a key issue that connects them is the conflict between state and local authority over the large facilities that form the foundation of the proposed crypto economy. Interestingly, a coalition of seven predominantly Southern states—Georgia, the Carolinas, Tennessee, Alabama, Mississippi, and Missouri—has pushed back against Right to Mine legislation. This trend may be influenced by the situation in Arkansas, which passed a Right to Mine bill in 2023 only to encounter such significant backlash that the bill’s sponsor quickly sought to implement stricter regulations. This could also reflect the states where crypto mining has gained the most traction.
The “bad actors” that Erwin referenced are frequently identified as Chinese-owned crypto mining firms, which have been relocating to the United States since 2021, following a crackdown on cryptocurrencies by the Chinese government. This governmental decision stemmed from various concerns, including the high energy consumption of crypto mining operations, which conflicted with their climate change objectives, as well as the system’s susceptibility to fraud. Additionally, noise pollution was a significant issue in rural China, where mining operations were often situated. Proponents of crypto mining argue that improved facility designs, featuring better sound insulation around the numerous fans that run continuously, will mitigate this issue. However, until these solutions are implemented, the noise from crypto mining remains a nuisance. Described as a loud, monotonous roar lacking any distinct highs or lows, the sound can travel considerable distances. Roberson notes that she has witnessed attendees at meetings become emotional while recounting the adverse effects of this noise on their lives. While the term “the smell of money” has long been used colloquially, it seems the sound produced by crypto mining may soon acquire its own unique connotation.
