Judge freezes Arkansas crypto mining law forbidding foreign ownership

 

 

A fight has broken out in Arkansas over the constitutionality of two laws that prohibit foreign ownership of digital data centers or crypto mines.

The 2023 and 2024 laws were challenged by Qimin “Jimmy Chen”, described by Arkansas Business as a naturalized U.S. citizen who was born in China. As a result of his legal challenge, a federal judge temporarily blocked the state from enforcing the laws. The judge ruled that Chen is likely to prevail on the merits of his case.

Chen sued claiming his equal protection, due proccess, Commerce, Supremacy and Takings clauses were violated by the law. Chief U.S. District Judge Kristine G. Baker, in a 10-page order,  issued a restraining order and Arkansas Business reported it would be effective 14 days.

Arkansas Attorney General Tim Griffin said he’ll stand up to defend the laws and do so “proudly and vigorously.”

Another court hearing is slated for early December.