El Reno Water Crisis Exposes Loopholes in Oklahoma's Bitcoin Mining Regulation
A Bitcoin mining operation in El Reno, Oklahoma drained millions of gallons from the town's water supply last month after city officials say it was never supposed to be running.
The leak at a fire hydrant connected to a private water line at a rural property was discovered after residents reported low water pressure across the area. City officials said they were surprised to find that the operation, owned by Athlon Blockchain Technology LLC, had ignored a stop work order issued in 2023 due to code and construction violations.
The Oklahoma Legislature passed the Blockchain Basics Act in 2024, which aimed to regulate the Bitcoin mining industry. However, an investigation found that the law actually limits local regulation of Bitcoin mines, forcing cities to treat them as if they are the same thing as data centers.