Arkansas Officials Remain Barred From Enforcing Crypto Mining Law

Two Arkansas officials and those acting with them remain barred from enforcing a 2024 crypto mining law and related rule after an Oct. 20 appeals hearing examined the injunction's reach.

The U.S. Court of Appeals for the Eighth Circuit heard the state's challenge but issued no ruling at the hearing. The appeal concerns a preliminary injunction obtained by the Arkansas Cryptomining Association.

Act 174 of 2024 prohibits specified foreign parties from holding an ownership interest greater than 0% in an Arkansas digital asset mining business. It also establishes permits and operating rules for mining facilities. The association argues that the ownership restriction conflicts with federal authority over foreign investment. Arkansas maintains that regulating property ownership and mining operations falls within state authority.

A federal district court found April 29, 2025, that the association was likely to succeed on its federal preemption claim. Its order bars Arkansas Oil and Gas Commission Director Alan York, Attorney General Tim Griffin and those acting with them from enforcing any part of Act 174 or the related Rule K until further order. The injunction expressly excludes the State of Arkansas.

The order's breadth drew attention at the appeals hearing. U.S. Circuit Judge James Loken called it “way overbroad.” The district court's order remains preliminary; it does not decide the lawsuit's final legal questions.

The association's case is separate from one brought by miner Jones Eagle LLC. A Dec. 9, 2024, order barred enforcement of Act 174 and a 2023 land ownership law against Jones Eagle. The association's injunction reaches every provision of Act 174 and Rule K for the officials it names.

The Eighth Circuit must now decide Arkansas' challenge to the preliminary injunction. The restrictions on the named officials remain in place until further court order.