The Johnson County Commission in Mountain City, Tennessee, convened on Thursday night and decided to impose a one-year ban on the establishment of Bitcoin mining facilities in the area.

The commission ultimately rejected the ordinance, which would have prevented the following, under the County Powers Act:

• Adult entertainment defined as adult activities, businesses or ventures that are lewd, lascivious, or explicit in nature
• Methadone clinics and/or other facilities where medications for opioid disorders are dispensed
• Debris dumping and hauling from other counties or states
• New junk yard, recycling center development, unless approved with appropriate fencing, screening and approval by the county commission and business licensing before beginning operation
• Cryptocurrency operation and/or data center development

Johnson County Attorney Ryan Carroll explained that the County Powers Act had been dismissed because it resembled zoning regulations, which might pave the way for similar policies in Johnson County. Therefore, the evening’s vote demanded a two-thirds majority for approval as it aimed to regulate a specific local issue—a one-year halt on new cryptocurrency mining operations.

The commission deemed the moratorium terms overly expansive, prohibiting both hobby and commercial Bitcoin mining. This decision did not sit well with many locals, leading to several of them leaving the meeting in discontent. Some even expressed intentions to run for local government positions.

Carroll noted that unlike areas such as Unicoi and Hawkins counties, Johnson County does not have stringent zoning laws. He suggested that the county’s main challenges are more connected to the absence of zoning regulations rather than the cryptocurrency mining itself.