Arkansas Cryptomining Association sues state over rule discriminating against foreign-born miners

From Cointelegraph

March 14, 2025 01:08 AM:

The Arkansas Cryptomining Association is suing state officials for enforcing a rule that discriminates against foreign-born American citizens engaging in crypto mining. The complaint targets Arkansas Attorney General Tim Griffin and Lawrence Bengal of the Arkansas Oil and Gas Commission. The rules “Rule K” and “Act 174” prohibit foreign-party controlled businesses. The Association argues these rules are unconstitutional and discriminatory.

The complaint was filed in the US District Court Eastern District of Arkansas on March 13. The lawsuit follows a federal court ruling that temporarily stopped Arkansas from preventing a naturalized US citizen of Chinese descent from operating a crypto mining business. Director Connor L. Kempton of the Arkansas Cryptomining Association states that the enforcement of Rule K and Act 174 is arbitrary and discriminatory, giving officials excessive powers.

The rules have impacted crypto mining firm Jones Eagle LLC, run by Qimin “Jimmy” Chen, a naturalized US citizen of Chinese origin. Kempton argues that Rule K and Act 174 violate the Equal Protection Clause of the 14th Amendment of the US Constitution, stripping American citizens of due process rights. The rules also infringe on the federal government’s authority to investigate foreign investments.

District Court Judge Kristine G. Baker previously barred Arkansas officials from enforcing Act 174 against Jones Eagle. The lawsuit highlights the clash between state and federal authority over foreign investments and the discriminatory nature of the state rules. The lawsuit aims to protect the rights of American citizens engaged in crypto mining.

Read more at Cointelegraph: Association seeks to overturn Arkansas law aimed at foreign crypto miners