Arkansas (AR): Bitcoin and virtual-currency law
Document text
Research, not advice. Part of the Bitcoin research archive (October 2026). Claims labelled unverified, contested or fringe are reported, not endorsed; statuses of bills and rules are as of the date checked. Government, court and patent records are public domain; the research notes are CC BY 4.0.
Arkansas (AR): Bitcoin and virtual-currency law
| Field | Value |
|---|---|
| Jurisdiction | US state: Arkansas |
| Date checked | 2026-10-09 |
| Main regulator | Arkansas Securities Department (ASD), which administers the money-services law. The Oil and Gas Commission permits crypto mines; the Attorney General enforces the foreign-ownership rules. |
| Money-transmitter law | Ark. Code § 23-55-101 et seq., still titled the Uniform Money Services Act (UMSA). Arkansas is a UMSA state, and in 2023 it amended the act with the CSBS Money Transmission Modernization Act (MTMA). |
| CSBS MTMA listing | "Arkansas Money Transmission Act", Full MTMA: Yes, effective 2023-08-01, Virtual Currency Title: No (CSBS, 2026-10-08) |
| URVCBA? | No |
| Crypto ATM / kiosk law | Yes. Act 557 of 2025 (HB1467), approved 2025-04-14, codified at § 23-55-1008 |
Summary
Arkansas's money-services statute explicitly covers virtual currency. "Money transmission" includes "facilitating, selling, trading, transferring, or converting virtual currency or monetary value in this state." The ASD therefore licenses bitcoin exchangers and kiosk operators.
- Kiosks: Act 557 of 2025 added kiosk rules: daily limits of $2,000 for new customers and $7,500 for existing ones, a fee cap of $5 or 18%, refunds, and a required phone call with first-time customers aged 60 or over.
- Crypto mining:
- Act 851 of 2023, the "Arkansas Data Centers Act", was a "right to mine" law that barred local noise and zoning rules aimed at crypto mines.
- After a rural backlash, the 2024 fiscal session largely reversed it. Act 173 and Act 174 of 2024 restored local control, required noise abatement and permits, and banned ownership by "prohibited foreign parties".
- A federal judge has preliminarily enjoined the foreign-ownership rules on preemption grounds, in two cases now on appeal to the 8th Circuit.
1. Money-transmitter licensing and virtual currency
- Statute: Ark. Code § 23-55-101 et seq., as compiled by the ASD and "effective August 5, 2025" (ASD PDF, saved):
- § 23-55-102(15)(A)(iii): "Money transmission" means, among other things, "facilitating, selling, trading, transferring, or converting virtual currency or monetary value in this state".
- § 23-55-102(28): "Virtual currency" means a digital representation of value used as a medium of exchange, unit of account or store of value that "does not have legal tender status as recognized by the United States Department of the Treasury". Software and protocols are excluded when not used as a medium of exchange.
- § 23-55-102(12): "Monetary value" means "a medium of exchange, whether or not redeemable in money."
- History: Arkansas enacted the UMSA in 2007 (year unverified). CSBS records MTMA amendments effective 2023-08-01. We did not find which act added the explicit virtual-currency language, or when.
- Arkansas Code title 4, chapter 11 ("Virtual Currency"): search-result snippets show § 4-11-104 ("Rights in virtual currency") as repealed in the 2025 code. We could not open the chapter (Justia blocked automated access), so what it held and why it was repealed are unverified. One guess, also unverified, is that it was replaced by UCC Article 12 on controllable electronic records.
2. Virtual-currency-specific statutes and guidance
| Item | Status | Source |
|---|---|---|
| UMSA virtual-currency definitions (§ 23-55-102) | In force | ASD compiled act (saved) |
| Act 557 of 2025 (HB1467), kiosk provisions in § 23-55-1008 plus a data-security article (§ 23-55-1101 et seq.) | Approved 2025-04-14 | Act 557 PDF (saved); bill page |
| ASD consumer flyer on kiosks (Dec 2025) | Guidance | ASD flyer (saved) |
| Act 851 of 2023 (HB1799), Arkansas Data Centers Act ("right to mine"), Ark. Code § 14-1-601 et seq. | In force as amended by Acts 173 and 174 of 2024 | Association of Arkansas Counties (secondary) |
| Act 173 of 2024 (SB78) and Act 174 of 2024 (SB79): crypto-mine noise abatement, permits through the Oil and Gas Commission, restored local control, ban on prohibited-foreign-party ownership (§ 14-1-606) | Enacted May 2024 with emergency clauses. Foreign-ownership parts preliminarily enjoined (section 5). | SB79 page ("SB79 is now Act 174"); SB78 page ("now Act 173"); SB79 engrossed text saved |
| Act 636 of 2023 (SB383): foreign ownership of land | In force but enjoined as to Jones Eagle | Discussed in the Jones Eagle order (saved) |
3. Crypto ATM / kiosk law
Act 557 of 2025 (HB1467). Sponsors: Rep. Achor and Rep. McCollum; Sen. J. Boyd. Approved 2025-04-14. It amends the UMSA (Act text):
- Definitions:
- A "new customer" is one registered for less than 72 hours.
- An "elder adult" is 60 or older.
- Kiosks ("money transmission kiosk" or "virtual currency kiosk") must be listed among a licensee's locations.
- Disclosures and receipts: terms and conditions in large type before a transaction, covering the amount, fees and exchange rate, plus warnings. Receipts must show fees, the address and other details.
- Fee cap: total fees and commissions may not exceed "(1) five dollars; or (2) eighteen percent". The text says "or" and does not say "whichever is greater".
- Daily limits: $2,000 for a new customer and $7,500 for an existing customer.
- Refunds: a new customer may cancel and get a full refund for fraudulent transactions made within 72 hours of registering. The customer must contact the operator and file a report with a government agency or law enforcement within 14 days (ASD flyer).
- Elder protection: the operator must speak with an elder adult who is a new customer before the first transaction (ASD flyer).
- ASD release: "Arkansas Securities Department Highlights New Law ...".
4. Tax treatment
No Arkansas Department of Finance and Administration guidance on virtual currency was found (we did not search the DFA site; unverified). Arkansas income tax generally starts from federal concepts.
5. Notable enforcement and litigation
| Date | Matter | Source |
|---|---|---|
| 2026-10-08 | Arkansas co-led (one of seven lead states) the 34-state, $2.5M settlement with Coinme Inc. for BSA/AML violations. Coinme will stop operating kiosks by 2027-01-01 or pay $4M more. Securities Commissioner Susannah T. Marshall is quoted. | CSBS; Stuttgart Daily Leader (ASD release text) |
| 2024-12-09 | Jones Eagle LLC v. Ward, E.D. Ark. No. 4:24-cv-00990-KGB (Chief Judge Kristine G. Baker). Preliminary injunction barring the state from enforcing Act 636 of 2023 and Act 174 of 2024 against Jones Eagle, a crypto miner. The court found the plaintiff "likely to prevail" on federal conflict and field (foreign-affairs) preemption, citing the federal CFIUS/FIRRMA and ITAR regimes. The State appealed (8th Cir. No. 25-1047). | Order saved in full: Jones-Eagle-v-Ward-EDArk-4-24-cv-00990-PI-order-2024-12-09-redacted.pdf (CourtListener/RECAP) |
| 2025-04-29 | Arkansas Cryptomining Association v. York (Bengal), E.D. Ark. No. 4:25-cv-00234. A second preliminary injunction giving facial relief against Act 174 and Oil and Gas Commission Rule K. The State appealed (8th Cir. No. 25-2050; the State's reply brief was filed 2026-02-18). | CourtListener docket; Kutak Rock (plaintiffs' counsel) release. The order itself is filed under seal, with a redacted copy at Dkt. 34, which we did not obtain. |
| Pending | We found no 8th Circuit decision in either appeal in CourtListener's opinion search on 2026-10-09 (unverified that none has issued). |
6. Bills
| Bill | Subject | Status | Source |
|---|---|---|---|
| HB1467 (2025) | Kiosks and data security under the UMSA | Act 557, approved 2025-04-14 | arkleg |
| SB10 (2025), Sen. Bryan King | Amend the Data Centers Act; state regulation of crypto mines' water and grid impact | Died in Senate committee at sine die | arkleg |
| SR7–SR12 (2026 fiscal session) | Resolutions to allow non-budget bills on mining: amend the Data Centers Act and the UMSA; notice before buying land; fees for "extraordinary electrical" use; water and grid impact; ban on computers made by "covered foreign entities" | All died in the Senate at sine die, 2026-04-29 | SR7 on arkleg; list from Bitcoin Laws (tracker) |
| Bill on mines near military bases (2025) | Restrict crypto mines near military installations | Reported "scrapped" (TheStreet headline; article blocked, bill number not identified) | unverified |
Pending: none. The next regular session starts in January 2027.
Strategic bitcoin reserve: no reserve bill was found for Arkansas (our search was limited; unverified).
7. Contested and fringe claims
- "Right to mine" versus local control. Supporters of Act 851, such as Sen. Joshua Bryant, called it a "preemption bill" to stop localities shutting down operating mines (AAC). Bitcoin-advocacy groups promoted it nationally as a model "right to mine" law. Opponents, including 51 counties that passed noise ordinances, called it a giveaway, and the legislature reversed it within a year. Digital Money Times (2026-06-27) calls the episode "a clean case study in how quickly a deregulation can curdle" (opinion piece).
- Foreign-ownership bans. Arkansas officials, including Gov. Sanders, framed the 2024 ban as removing Chinese-owned mines near sensitive sites. The federal court found the ban likely preempted by federal foreign-affairs law. Plaintiffs' counsel calls the laws "unconstitutional". Courts have issued only preliminary findings.
- Date error in a law-firm release. Kutak Rock's release says "Act 174 of 2023"; the legislature's record shows Act 174 of 2024.
Saved sources (sources/states/ar/)
See sources/states/ar/INDEX.md.
Gaps
- Which act added the explicit virtual-currency language to § 23-55-102, and when.
- The content of Ark. Code title 4, chapter 11 and the act that repealed it.
- The redacted 2025-04-29 order in the Cryptomining Association case (not on RECAP as a PDF).
- Whether the 8th Circuit has ruled.
- DFA tax guidance.
- A full list of 2025 crypto bills, because the Arkansas keyword search could not be automated.