In a significant follow-up to its earlier victory in Jones Eagle v. Ward, Kutak Rock has once again successfully defended the rights of its client, the Arkansas Cryptomining Association (ACA), and its members against unconstitutional state regulations. On April 29, 2025, a federal court issued a preliminary injunction blocking the enforcement of Act 174 of 2023 and Arkansas Oil and Gas Commission Rule K, citing serious constitutional concerns.

The ruling represents a major win for the ACA and its members, including Jones Eagle and New Rays One, and follows a similar court order issued in Jones Eagle v. Ward. In that case, which was previously covered here, the court enjoined Arkansas from enforcing Act 174 against Jones Eagle specifically. However, despite that injunction, the State moved forward with both rulemaking and enforcement efforts targeting other ACA members—prompting this broader legal challenge.

The court’s decision in this second case reiterates that Arkansas’ attempts to regulate cryptomining operations under Act 174 and Rule K likely violate federal law. The court found that the ACA’s members faced ongoing harm due to the state’s actions and granted the injunction after hearing testimony from multiple witnesses and argument of counsel. The court awarded facial relief, blocking any enforcement efforts of Act 174 or Rule K as the litigation continues.

Kutak Rock attorneys Fred Davis, Alex Jones, McKenzie Raub and Peyton Watts represented the ACA in this case. Their continued work underscores Kutak Rock’s role in protecting clients operating at the intersection of energy, infrastructure, and emerging technology.