Tennessee City Board Passes Ordinance Permitting Future Crypto Mining

Introduction

Kingsport, Tennessee’s city government has moved to modernize its zoning rules to attract data centers and cryptocurrency mining operations, signaling a broader municipal push to embrace digital infrastructure. In a unanimous vote on first reading, the Board of Mayor and Aldermen approved amendments to land-use rules that would define where such facilities can operate, subject to sustainability and safety requirements. The measure now awaits a second vote before it can become law, while state policymakers in Tennessee consider a Bitcoin-related reserve strategy that could reshape public asset management.

Key Takeaways

• Kingsport advances zoning amendments to specifically accommodate data centers and cryptocurrency mining facilities with defined siting rules.
• Crypto mines would have to operate within a completely enclosed building and maintain a minimum buffer of 500 feet from residential areas, with a sound study required and a maximum noise level of 60 dBA at the property line.
• The ordinance moves forward after the planning division’s December recommendation and requires a second vote to become law, reflecting careful oversight of digital infrastructure projects.
• In parallel, Tennessee lawmakers have introduced a Bitcoin reserve act aiming to allow up to 10% of the general fund to be invested in Bitcoin, though political support remains uncertain.

Tickers mentioned: $BTC

Sentiment

Sentiment: Neutral

Price Impact

Price impact: Neutral. The policy-oriented changes pertain to land use and regulatory exposure rather than immediate market moves.

Trading idea (Not Financial Advice)

Trading idea (Not Financial Advice): Hold

Market context

Market context: The Kingsport initiative fits a broader pattern of U.S. municipalities weighing crypto-friendly zoning and infrastructure expansion as miners and data centers seek favorable locations and predictable regulatory regimes.

Rewritten article body

In Kingsport, Tennessee, the Board of Mayor and Aldermen approved on first reading an ordinance to amend the city’s land zoning to better accommodate data centers and cryptocurrency mining facilities, according to local reports. The measure, which now advances after a December recommendation from Kingsport’s planning division, requires a second vote before it can become law. The proposal outlines where such facilities may operate within the city’s boundaries and signals an intent to position Kingsport as a hub for digitized infrastructure while maintaining oversight.

The amendment stipulates that crypto mining operations would be permitted only in completely enclosed buildings and must avoid being located within 500 feet of residential buildings or districts. Alongside siting restrictions, the plan calls for a required sound study, with a maximum permissible noise level of 60 decibels A-weighted (dBA) at the property line. This threshold mirrors broader debates across the United States about the nuisance potential associated with crypto mining noise, and it reflects the city’s attempt to balance industrial use with neighborhood quality of life.

In presenting the amendment, officials cited the city’s industrial district zoning code as an area that hadn’t anticipated mass digitization and the influx of digital data-driven industries seeking space. Staff argues that the revised text would allow the city to appropriately locate and permit these uses, ensuring that operations meet environmental and community standards while enabling the growth of modern infrastructure. The planning commission’s report underscored the need to align new technologies with careful planning and oversight as the digital economy expands in Tennessee.

One notable industry reference tied to Tennessee’s evolving crypto landscape is CleanSpark (NASDAQ: CLSK), which in 2024 reached an agreement to purchase seven mining facilities around Knoxville. The Kingsport measure arrives amid a broader statewide push to attract digital-asset infrastructure and related services, with operators looking for predictable permitting processes and a favorable regulatory environment. CleanSpark’s footprint in Tennessee underscores the state’s growing appeal to crypto miners seeking operational leverage in a region with lower energy costs and a pro-business climate.

Beyond the local zoning discussion, a Tennessee House member introduced the Tennessee Strategic Bitcoin Reserve Act. Representative Jody Barrett’s bill would amend the state code to authorize the treasurer to invest up to 10% of Tennessee’s general fund in Bitcoin. It remains unclear whether the measure will gain enough political traction to pass the general assembly, and proponents have suggested a July 1 effective date if enacted. The proposal highlights the ongoing intersection of public finance and digital assets at the state level, a trend mirrored in other jurisdictions weighing whether to treat Bitcoin as a reserve-like asset or strategic investment.

The ongoing policy dialogue in Kingsport and across Tennessee occurs within a broader national conversation about crypto regulation and industrial policy. As cities seek to attract energy-intensive crypto mining and data-center operations, local governance must navigate noise concerns, zoning compatibility, and community engagement. In Tennessee, lawmakers are also probing how digital assets might intersect with state budgeting and treasury management. Market stakeholders will watch how these regulatory experiments unfold, testing the balance between enabling technology and protecting residents’ quality of life.

This article was originally published as Tennessee City Board Passes Ordinance Permitting Future Crypto Mining on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.