WORLDTECHArkansas Bitcoin mining ownership curbs stay blocked as Eighth Circuit weighs appeal
Arkansas limits on certain foreign-controlled companies taking part in its Bitcoin mining sector are on hold while the US Court of Appeals for the Eighth Circuit decides whether that block should remain. Crypto Briefing reports that the outcome could set a precedent for how states control foreign investment in digital industries.
What the Arkansas measures would restrict
The dispute centres on two state laws, Act 636 from 2023 and Act 174, which took effect in May 2024. Read together, they keep businesses controlled by foreign parties linked to countries on the US International Traffic in Arms Regulations list out of local digital asset mining enterprises. Act 174 specifically rules out such foreign-party-controlled businesses acquiring stakes in digital asset mining operations.
Challenge brought by a naturalised citizen's firm
The challenge was filed by Jones Eagle LLC, a company run by Qimin "Jimmy" Chen, a naturalised US citizen born in China. The company contends that federal law on foreign affairs and foreign investment overrides the Arkansas laws.
Lower court halted the restrictions
Jones Eagle prevailed in the early rounds. A temporary restraining order was issued in November 2024, followed by a preliminary injunction in December 2024. The court concluded the plaintiffs were likely to succeed on their claims and pointed to the risk of irreparable harm from investigations targeting foreign-owned entities. The injunction was expanded in April 2025.
Arkansas officials have taken the matter to the Eighth Circuit and asked the appeals court to vacate the lower court's order. Until that court rules, the restrictions remain blocked.
Open questions
- Will the Eighth Circuit keep the block on the Arkansas restrictions in place?
- Could the outcome shape how other states regulate foreign investment in digital industries?