US appeals court hears Arkansas challenge to order blocking its crypto mining law

The US Court of Appeals for the Eighth Circuit heard Arkansas’s challenge to a court order blocking enforcement of the state’s 2024 crypto mining law on Tuesday 20 October, US time, but did not issue a ruling, TokenPost reported.

The appeal concerns a preliminary injunction won by the Arkansas Cryptomining Association against Act 174 of 2024. The law bars specified foreign parties from holding any ownership interest in an Arkansas digital asset mining business and sets permit and operating rules for mining facilities, according to TokenPost.

The association argues that the ownership restriction conflicts with federal authority over foreign investment. Arkansas says regulating property ownership and mining operations is within state authority, TokenPost reported.

A federal district court found on 29 April 2025 that the association was likely to succeed on its federal preemption claim. Its order bars Arkansas Oil and Gas Commission Director Alan York, Attorney General Tim Griffin and those acting with them from enforcing any part of Act 174 or a related rule, Rule K, until further order, according to TokenPost. The order excludes the State of Arkansas itself.

At the hearing, Circuit Judge James Loken called the injunction “way overbroad,” TokenPost and Coin Edition reported. The injunction remains in force while the appeals court considers the case. It is preliminary and does not decide the lawsuit’s final legal questions.

A separate case brought by mining company Jones Eagle LLC led to a December 2024 order barring enforcement of Act 174 and a 2023 land ownership law against that company, TokenPost reported.