Utah has passed legislation giving cryptocurrency mining operations unprecedented freedoms in a move that may harm the environment and raise utility costs for residents.
The controversial HB230 bill establishes special rights for crypto companies with minimal local oversight, as John Weisheit, conservation director of Living Rivers-Colorado Riverkeeper, and Steve Erickson, board member at Great Basin Water Network, detailed for the Deseret News.
What is HB230?
HB230, officially titled "Blockchain and Digital Innovation Amendments," gives crypto mining companies the right to mine cryptocurrency, run blockchain nodes, and stake tokens with minimal interference or oversight in Utah.
The bill shields these operations from local zoning laws, noise ordinances, and other regulations that normally govern businesses. It also waives requirements for digital operations to obtain money transmitter licenses, which typically involve financial audits.
Why is HB230 concerning?
This legislation prioritizes crypto industry profits over environmental protection and community well-being.
Proof-of-work cryptomining already consumes up to 2.3% of the entire U.S. electricity supply, according to the Energy Information Administration, more than many countries use. For Utah residents, this could mean higher electricity bills, increased strain on the power grid, and more pollution.
The bill creates special "opportunity zones" for crypto miners while offering no provisions for managing water usage, an oversight for a drought-prone state like Utah, where water conservation is important.
"Make no mistake — this is not innovation," wrote Weisheit and Erickson. "It will harm every Utahn who pays a power bill, who cares about clean air and water, or who believes public money should serve the public good."
How crypto mining affects communities and the environment
Cryptocurrency mining's energy demands have a large pollution footprint. These operations run 24/7 while consuming electricity sourced mainly from dirty fuels — although the industry has begun shifting toward cleaner energy sources.
Despite these improvements, mining remains a highly energy-intensive process.
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No way 👎 Crypto mining facilities can consume as much water as 300,000 households yearly to prevent their machines from overheating, per Weisheit and Erickson. In a state like Utah that faces droughts, this water consumption pressures an already-strained resource.
Noise pollution also impacts communities near mining operations. The constant sound of cooling fans has been compared to having a semitruck engine running outside your window constantly — and this has led to lawsuits in some jurisdictions. Under HB230, local governments can't regulate this noise even when it disrupts residents' sleep and quality of life.
What we can learn from other states
Arkansas passed similar legislation last year with disastrous results. The state quickly faced widespread noise complaints and utility cost increases, forcing lawmakers to reconsider. Some co-sponsors even admitted they had been misled about the bill's impacts.
"Lawmakers and the crypto industry are celebrating the passage of this bill as a bipartisan win that will position the state to lead," said Weisheit and Erickson. "But it's a corporate giveaway, plain and simple."
The National Coalition Against Cryptomining is now working in 18 states to combat this trend of deregulation. They're building a bipartisan movement of people concerned about corporations that negatively affect quality of life and receive special treatment from lawmakers.
You can help by staying informed about crypto legislation in your area and contacting your representatives when similar bills are proposed. Supporting organizations fighting for appropriate regulation of this industry helps ensure our shared resources are not exploited at the public's expense.
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