Arkansas appeals to the Eighth Circuit Court to lift the injunction on the out-of-state crypto mining restriction bill.

According to Bloomberg Law, Arkansas and its Oil and Gas Commission urged the court during oral arguments before the Eighth Circuit Court of Appeals on Tuesday (Oct. 20) to vacate an injunction that blocked the state from enforcing its law restricting foreign-owned cryptocurrency mining. Enacted in 2024, the law prohibits citizens or entities of countries subject to U.S. State Department arms export controls from holding equity stakes in digital asset mining equipment in the state. Joseph Nelson of the Arkansas Attorney General’s Office challenged the lower court’s ruling, which found that the state law was likely preempted by federal regulations. Nelson argued that the law “goes to the very core of the state’s police powers,” and its restrictions on foreign ownership and investment align with the list of countries identified by the federal government as posing a threat to national security.