US judge halts Arkansas crypto mining restrictions temporarily

A federal judge in Little Rock, Arkansas, has issued a temporary restraining order (TRO) preventing state officials from shutting down a cryptocurrency mining operation owned by a naturalised U.S. citizen of Chinese descent.

On November 25, Chief U.S. District Judge Kristine Baker granted the TRO in favor of Jones Eagle, a cryptocurrency mining firm owned by Qimin “Jimmy” Chen, a naturalised citizen residing in New York.

The lawsuit challenges two Arkansas laws—Act 636 of 2023 and Act 174 of 2024—which target foreign-owned businesses and digital asset mining operations.

Act 636 prohibits property ownership in Arkansas by entities connected to the Chinese government, while Act 174 bans foreign ownership of cryptocurrency mining operations.

The state alleged that Chen's company, Eagle Asset Holding, was owned by a Chinese national and sought a permanent shutdown.

However, Chen’s legal team argued the laws violated constitutional protections against discrimination based on national origin.

“The TRO and preliminary injunction will prevent further harm to our client while we prepare for a trial on the merits where we will get to fully present our case as to why the laws are unconstitutional and reflect legislative overreach,” said Alex Jones, Chen’s attorney.

Chen also stated that he had provided documentation to Arkansas authorities confirming that his crypto mining site was not on agricultural land and had attempted to clarify his citizenship status, but those efforts were dismissed.

The TRO will remain in effect for 14 days, during which a hearing will determine whether it should be extended.

“I have been investigating a number of crypto mining operations and simply seeking the facts, but not all of the entities have cooperated fully,” commented Arkansas Attorney General Tim Griffin.