Bill
HR 1010
Arkansas would ban using hardware or software from covered foreign entities in digital asset mining, with criminal penalties for violations.
A. Purpose and intent
- HR 1010 proposes to authorize the introduction of a nonappropriation bill that would ban the use of computers manufactured or assembled by a “covered foreign entity” in digital asset mining, and to ban the use of software developed by a covered foreign entity in digital asset mining.
- The measure is framed as a prohibition on certain hardware and software in digital asset mining activities within Arkansas.
B. Definitions and key terms
- Covered foreign entity (newly defined in Arkansas Code § 14-1-603): includes
- Any entity on the U.S. Consolidated Screening List or Entity List (as designated by the U.S. Secretary of Commerce),
- An entity domiciled in the People’s Republic of China or the Russian Federation,
- An entity under the influence, control, or direction of the governments of China or Russia,
- An entity that is a subsidiary or affiliate of any entity described in the above subpoints.
- The definition targets both direct and affiliate relationships with designated foreign entities.
C. Provisions and substantive changes
1) Hardware prohibition
- Section 14-1-607(a) would prohibit digital asset mining businesses and individual digital asset miners from using:
- A computer manufactured or assembled by a covered foreign entity;
- A software program developed by a covered foreign entity.
- Scope covers both professional digital asset mining operations and “home digital asset mining.”
2) Penalties
- Violation penalties (Section 14-1-607(b)):
- First offense: Class A misdemeanor.
- Second or subsequent offense: Class D felony.
- Penalties apply upon conviction, signaling criminal enforcement rather than regulatory or civil penalties.
D. Affected entities and activities
- Digital asset mining businesses (commercial miners) in Arkansas.
- Individual/household digital asset miners who mine at home.
- Suppliers and vendors of mining hardware and software that would be considered “manufactured or developed by” covered foreign entities, indirectly affected by denial of use.
E. Procedural and timeline aspects
- The bill is introduced as a nonappropriation measure (i.e., not involving state appropriations).
- Technical sponsor: Rep. McNair; co-sponsor: Rep. Ron McNair.
- The draft text references authorizing a Senator (King) to introduce the bill as introduced, indicating it follows the typical Arkansas process for nonappropriation bills.
- Status: The bill was filed and referred to the House Rules committee. It died in committee at sine die adjournment (April 29, 2026). No further legislative action occurred in the session.
F. Practical impact and considerations
- If enacted, Arkansas would effectively bar the use of certain foreign-made hardware and software from mining activities if those products are tied to covered foreign entities.
- The prohibition relies on lists and affiliations tied to national security or foreign influence concerns, aligning with broader export control and national security screening frameworks.
- Enforcement would rely on criminal statutes, creating potential criminal liability for offenders.
- Businesses and individuals engaged in digital asset mining would need to audit their hardware/software suppliers and replace any prohibited equipment or software to remain compliant.
Compiled from official sources — confirm details with the bill’s official record.
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