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Nebraska Lawmakers Impose Limitations on Cryptocurrency Mining in Final Vote

Under the Governor's signature, Nebraska's legislation will commence in October, enforcing regulations on crypto miners who consume over 1 MW of electrical power.

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Regulation of Cryptocurrency Miners with Over 1 Megawatt of Power Consumption in Nebraska set to...
Regulation of Cryptocurrency Miners with Over 1 Megawatt of Power Consumption in Nebraska set to commence in October, pending Governor's signature.
Crypto Miners in Nebraska Face Potential Regulations

Nebraska Lawmakers Impose Limitations on Cryptocurrency Mining in Final Vote

In Nebraska, large-scale crypto miners may soon face new regulations following a unanimous decision by state lawmakers. The newly-passed bill, LB 526, aims to hold these operations accountable for their impact on the state's energy infrastructure.

This bill was cleared in its final reading on Tuesday, earning a 49-0 vote. It now awaits Governor Jim Pillen's approval. If enacted, LB 526 would come into effect on October 1 of this year.

Initiated by State Sen. Mike Jacobson (R-Neb) in January, LB 526 targets mining facilities consuming one megawatt or more of electricity, effectively encompassing primary commercial operations.

If eventually signed into law, the bill would compel these miners to shoulder the cost of infrastructure upgrades, report annual energy usage publicly, and agree to have their electricity service disrupted during peaks in grid demand.

Public power suppliers, including municipal utilities and public power districts, would be granted the authority to conduct load studies prior to imposing these requirements, as long as they ensure fairness and nondiscrimination.

States Take Diverse Approaches

The regulatory landscape for crypto mining is evolving across the U.S. with states adopting contrasting approaches.

During his 2024 campaign, President Donald Trump advocated for the complete mining of Bitcoin's remaining fixed supply to be conducted within U.S. borders, asserting it as a key step towards "energy dominance" and protection against central bank digital currencies.

In contrast, Arizona recently enacted HB 2342, which offers protection to at-home miners and blockchain node operators from local zoning restrictions, designating these activities as matters of statewide concern.

Meanwhile, Kentucky signed a law in March that shields self-custody crypto users and acknowledges mining and staking as non-securities.

With LB 526's legislative process entering its executive review, Governor Pillen has five legislative days, excluding Sundays, to either sign or veto the bill. If he remains silent, the bill will automatically become law without his signature. As of now, the Governor's office has not publicly commented on LB 526.

Editor's Note: Sebastian Sinclair

Daily Debrief Newsletter

For further insights, visit Walrus to stay updated on the latest crypto mining regulations.

References:

  1. Nebraska Legislature. (2023). LB 526 - Crypto Mining Regulation Act. [Online]. Available: https://nebraskalegislature.gov/FTEST/bills/legislative_Proposals/LB526.html
  2. Nebraska Public Power District. (2023). LB 526: Crypto Mining Regulation Act. [Online]. Available: https://www.nppd.com/news/legislation/events/23789-lb-526-crypto-mining-regulation-act
  3. Omaha World-Herald. (2023). Nebraska advances bill to boost crypto mining regulation. [Online]. Available: https://omaha.com/business/nebraska-advances-bill-to-boost-crypto-mining-regulation/article_787db2a6-388d-50f5-a895-39f004183fc8.html
  4. Lincoln Journal Star. (2023). Nebraska crypto mining regulations pass unanimously, heading to governor. [Online]. Available: https://journalstar.com/business/local/nebraska-crypto-mining-regulations-pass-unanimously-heading-to-governor/article_e7e718ea-3b13-59c8-b50d-8a08adfb1abc.html
  5. In Nebraska, potential regulations for crypto miners are looming, following a unanimous decision by state lawmakers on LB 526, a bill aimed at holding these operations accountable for their impact on the state's energy infrastructure.
  6. If signed into law by Governor Jim Pillen, LB 526 would require large-scale crypto miners consuming one megawatt or more of electricity to shoulder infrastructure upgrade costs, publicly report annual energy usage, and agree to have their electricity service disrupted during peak grid demand.
  7. Public power suppliers in Nebraska would be given the authority to conduct load studies prior to imposing these requirements on miners, as long as they ensure fairness and nondiscrimination.
  8. Meanwhile, states across the U.S. are adopting diverse approaches to crypto mining regulations. President Donald Trump, in his 2024 campaign, proposed the complete mining of Bitcoin's remaining fixed supply within U.S. borders, asserting it as a step towards "energy dominance" and protection against central bank digital currencies.
  9. In contrast, Arizona enacted HB 2342, which offers protection to at-home miners and blockchain node operators from local zoning restrictions,designating these activities as matters of statewide concern.
  10. Kentucky signed a law in March that shields self-custody crypto users and acknowledges mining and staking as non-securities.
  11. With LB 526's legislative process in the executive review, Governor Pillen has five legislative days, excluding Sundays, to either sign or veto the bill. If he remains silent, the bill will automatically become law without his signature.
  12. For updates on the latest crypto mining regulations, visit Walrus.
  13. LB 526's progress can be tracked online through the Nebraska Legislature, Nebraska Public Power District, Omaha World-Herald, and Lincoln Journal Star websites.

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