The Board of Mayor and Aldermen in Kingsport, Tennessee approved changes to the city’s zoning rules that could pave the way for cryptocurrency mining companies and data centers to operate locally.
In a Tuesday meeting, the board unanimously approved on first reading an ordinance to amend the land zoning related to data centers and cryptocurrency mining sites, according to local reports.
The ordinance sets guidelines on where those facilities could be located within the city. Its approval followed a recommendation from Kingsport’s planning division in December and requires a second vote before the amendment is formally adopted.
“The City’s industrial district zoning code text was created without the anticipation of mass digitization,” said the planning commission’s report to the board. “Staff expects to see new digital data-based industries looking for locations to develop. This text amendment allows for the City to appropriately locate and permit these uses.”
According to the amendment, crypto mining companies would be permitted to operate in Kingsport provided they were in a “completely enclosed building” not located within 500 feet (152 meters) of a residential building or district.
The proposal noted that any crypto mining operation would be subject to approval based on a sound study, with a maximum sound level of 60 dBA (A-weighted decibel) from the property line. Residents in other areas of the US, including Hood County in Texas, have filed lawsuits over the noise from crypto miners.
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With an estimated 57,000 people, Kingsport sits in the top 20 of Tennessee cities by population, making crypto-related legislation significant for a US state already considered by many companies to be friendly to miners. CleanSpark reached an agreement in 2024 to purchase seven mining facilities around Knoxville.
Tennessee lawmaker moves for state to adopt Bitcoin reserve
On Wednesday, Tennessee House of Representatives member Jody Barrett introduced the Tennessee Strategic Bitcoin Reserve Act. The proposed bill would amend the state’s code to allow the treasurer to invest up to 10% of Tennessee’s general fund in Bitcoin (BTC).
It’s unclear at the time of publication if the bill will have enough political support to pass Tennessee’s general assembly. If signed into law, Barrett proposed it take effect by July 1.
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