Hawkins County Commissioners in Tennessee have voted unanimously to ban cryptocurrency mining facilities and data centers in unincorporated areas, marking the county's second prohibition on digital asset operations amid an ongoing legal dispute with a mining company.

On Monday, the commission approved the measure 12-0, prohibiting the establishment, construction, installation, expansion, and operation of crypto mining facilities and data centers in unincorporated parts of the county. The vote follows a similar ban enacted in September 2025, which was aimed at blocking ExoticRidge, a digital asset mining company, from setting up operations in the area. In January, the county also passed a resolution affirming its authority to impose such restrictions. The back-to-back bans highlight an escalating tension between local zoning authority and digital asset businesses seeking to operate in rural areas with access to affordable electricity and land.

ExoticRidge and Hawkins County officials reached a proposed settlement in January regarding the company's operations. Under the terms, ExoticRidge would be permitted to construct and operate its facility, subject to noise limitations. Specifically, the company would be restricted from operating above 80 A-weighted decibels (dBA) at the property line "for more than 30 minutes during any four-hour period." The proposed settlement agreement is documented in public records. Noise complaints from nearby residents have been a driving factor in community opposition to crypto mining facilities across multiple U.S. jurisdictions, as industrial cooling fans and computing equipment can run continuously at high volumes.

The Hawkins County legislative agenda and prior meeting minutes are available through the county clerk's website, including minutes from the September 2025 meeting.

The county-level prohibition is the latest in a series of actions taken by Tennessee officials against cryptocurrency-related businesses. On July 1, the use and installation of cryptocurrency ATMs and kiosks became illegal statewide under a law signed in April. That restriction was enacted in response to reports of residents, particularly senior citizens, using the machines to transfer funds to scammers. The Hawkins County dispute could test the legal boundaries of how far local governments can go in restricting crypto mining operations that have already proposed or reached settlements, a question that has surfaced in similar zoning battles in states including New York, Texas, and North Carolina.

Source: Cointelegraph