Nebraska lawmakers unanimously approve LB 526, a bill regulating large-scale crypto-mining facilities. If Governor Jim Pillen signs it into law, it will introduce slight restrictions to Bitcoin mining, including possible increments in mining costs.
A crypto watchdog, Bitcoin Laws, reported:
The Nebraska Legislature just passed a bill to regulate Bitcoin miners. LB 526 requires large miners to cover the cost of infrastructure upgrades, requires miners to report energy usage, and permits authorities to interrupt service. The bill passed unanimously 49-0.
– Bitcoin Laws
Nebraska’s LB 526 is limited to only large mining facilities
The LB 526 will only apply to mining facilities that consume at least 1 megawatt of electricity. The legislation dictates that these facilities pay for grid infrastructure upgrades, report their yearly energy consumption, and comply with temporary shutdowns in cases of grid strain.
However, unlike other crypto mining bills, this legislation steers away from carbon emission requirements or other environmental impact stipulations. Senator Mike Jacobson, who introduced the bill, mainly intends to check on the state’s electricity consumption, arguing that the legislation will ensure the state’s power system is not overwhelmed.
Governor Pillen has only five days to sign or veto the bill. If he signs it, the regulations could take effect as early as October 1, 2025.
Pillen has publicly spoken about crypto, describing it as an important and emerging industry, but he’s never specifically commented on crypto mining. While he’s never discussed the matter, some believe he will likely sign the bill into law.
His recent approval of a crypto bill also raises analyst expectations. In March, Pillen signed the Controllable Electronic Record Fraud Prevention Act (LB609) into law to regulate digital asset transactions. Per the legislation, operators of controllable electronic record kiosks must be licensed and have to reveal risks and fees to customers. They are also obligated to use blockchain analytics for fraud detection.
Per the current bill’s requirements, Marathon is the only Bitcoin firm that could see its operations affected. If the bill actually becomes law, Marathon’s reaction could determine how other large mining facilities will operate in the future.
Arizona’s Hobbs vetoed two crypto bills that could advance Bitcoin’s integration
Nebraska is closely following in the footsteps of Texas, which signed the Senate Bill 1751 to regulate Bitcoin miners’ electricity consumption into law. While SB 1751 became law recently, it was introduced nearly two years after crypto miners had to halt operations over a sudden heat wave months before.
In 2022, experts worried about power outages and high strain on power grids in Texas due to miners’ operations, which may have contributed to the bill’s drafting.
Meanwhile, in Arizona, Governor Katie Hobbs vetoed two crypto legislation, SB 1373 and SB 1024, centered on having Bitcoin integrated into the state’s reserves and used for tax payments.
Hobbs claimed that these bills would only increase volatility and financial risks and, hence, hurt state finances. However, the state had approved a bill to regulate Bitcoin ATMs before, which made her decision to veto the bills all the more contentious. Some have even suggested that the state only wants regulatory control without encouraging crypto adoption and integration.
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