The Hawkins County Commission in Tennessee has imposed a blanket ban on the establishment, construction, installation, expansion and operation of cryptocurrency mining facilities and data centers in unincorporated areas.

On July 29, blockchain outlet Cointelegraph reported that the county commission passed the measure unanimously, 12-0, in a vote on July 28.

The measure is the second digital asset-related ban after the commission introduced a ban in 2025. At the time, it restricted some activities as part of efforts to block mining company ExoticRidge from entering the area. In January, it also adopted a resolution reaffirming that the commission has the authority to enforce such regulations.

The key point is that the scope of the ban has been clarified. The new measure stipulates that, in unincorporated areas, it blocks not only the establishment and construction of cryptocurrency mining facilities and data centers, but also their installation, expansion and operation. As a result, new entrants as well as expansion of existing businesses will be constrained.

The conflict between the commission and ExoticRidge has now led to litigation. The two sides proposed a settlement in January, which included allowing construction and operation on condition of noise limits. Under the proposed conditions, noise measured at the site boundary cannot exceed 80 dBA for more than 30 minutes over a four-hour period.

The decision comes as regulation of crypto businesses in Tennessee is extending beyond the commission to the state level. In Tennessee, the use and installation of cryptocurrency ATMs and kiosks became illegal from July 1 under a law signed in April. The state government cited cases in which elderly residents sent money to scammers through the machines as a problem.

As a result, regulatory pressure appears to be rising in Tennessee on both mining infrastructure and on-site crypto services. The commission's latest ban, tied to its dispute with ExoticRidge, is a case in which the scope for permitting local business has narrowed again, and the handling of any settlement and the actual enforcement process are expected to become the next issues.