Nebraska Lawmakers Pass Limitations on Cryptocurrency Mining in Final Vote
Got your mining rig set up in Nebraska? Well, start getting ready for some regulation. Nebraska lawmakers unanimously approved LB 526 this week, a bill that could impact how crypto miners operate in the state.
LB 526: In a Nutshell
Introduced by State Sen. Mike Jacobson (R-Neb) earlier this year, LB 526 is designed to hold large-scale crypto mining operations accountable for their impact on Nebraska's energy infrastructure. The bill is specifically targeting facilities consuming one megawatt or more of electricity.
If signed into law, the bill will require these miners to pay for infrastructure upgrades, publicly disclose their energy usage, and agree to temporary service interruptions during periods of grid strain. The legislation also grants public power suppliers the authority to conduct load studies and enforce power limits to protect the state's electrical grid.
Where the States Stand on Crypto
LB 526's approval comes as states across the U.S. grapple with how to regulate cryptocurrency mining. Arizona recently enacted HB 2342 to shield home miners and blockchain node operators from local zoning restrictions. Meanwhile, Kentucky signed a law in March to protect crypto users who self-custody their crypto assets and also confirmed that mining and staking are not considered securities.
The Governor's Decision
The next step in Nebraska's legislative process is for the bill to go through the governor's review. Governor Jim Pillen has yet to comment on LB 526, but if enacted, the law would take effect on October 1, 2025. So, if you're thinking of setting up shop in Nebraska, you may want to hold off until we know exactly how this is going to play out.
*Source: Discover SCENE, Decrypt, and other sources
In other news, Bitcoin advocates are campaigning to have the remaining Bitcoin's fixed supply mined within U.S. borders. But will the rest of the country follow Nebraska's lead? Only time will tell. Stay tuned for more updates.
- Crypto miners in Nebraska, particularly those with large-scale operations consuming a megawatt or more of electricity, should prepare for potential changes in their operations.
- LB 526, a bill recently approved by Nebraska lawmakers, aims to hold these large-scale miners accountable for their impact on the state's energy infrastructure.
- If signed into law, the miners will be required to pay for necessary infrastructure upgrades, publicly disclose their energy usage, and agree to temporary service interruptions during grid strain.
- The bill empowers public power suppliers to conduct load studies and enforce power limits to protect Nebraska's electrical grid.
- Across the U.S., states are grappling with how to regulate cryptocurrency mining, with Arizona recently shielding home miners and blockchain node operators from local zoning restrictions and Kentucky protecting self-custodied crypto asset users while confirming that mining and staking are not securities.
- The next step in Nebraska's legislative process is for the bill to go through Governor Jim Pillen's review.
- If enacted, the law, LB 526, is set to take effect on October 1, 2025.
- Meanwhile, Bitcoin advocates are pushing for the remaining Bitcoin to be mined within U.S. borders, but it remains unclear if other states will follow Nebraska's example in regulating crypto mining.
