ST. PAUL, Minn. (CN) — A legal battle over digital asset mining in Arkansas landed before the Eighth Circuit Tuesday, as state officials urged the court to lift an injunction blocking state law limiting foreign ownership.

At the heart of the debate is Arkansas’ Act 174, passed in 2024 to create a permitting scheme for electricity-consuming digital asset mining operations, a type of data center.

The Arkansas Cryptomining Association — a trade group representing crypto mining companies — sued the state last year over a section of the act prohibiting certain foreign parties from owning an interest in such operations.

Prohibited parties include citizens and businesses from or belonging to countries subject to federal arms export…