Lawmakers in Nebraska Approve Bill Regulating Crypto Miners

Nebraska lawmakers have taken a firm stance on cryptocurrency mining by passing a new bill aimed at controlling the energy consumption of large-scale operations. The bill, LB 526, received unanimous support in the state legislature and now awaits action from Governor Jim Pillen. If he signs it, or takes no action within five legislative days (excluding Sundays), it will automatically become law, going into effect on October 1, 2025.

The legislation zeroes in on commercial crypto mining operations that use a megawatt (MW) of electricity or more. This threshold is designed to leave small-scale or hobbyist miners untouched, focusing instead on large operations that can put significant pressure on local power infrastructure.

Under LB 526, these large crypto miners will have to:

• Cover the costs of any necessary infrastructure upgrades tied to their power usage.
• Disclose their annual electricity consumption to the public.
• Agree to power interruptions during peak demand periods to protect the grid from strain.

The bill also strengthens the role of public power entities, such as local utility providers and power districts, by allowing them to conduct load assessments. These studies will help utilities evaluate how much burden a mining facility places on the system.

While the law requires fairness in enforcement, it also gives providers broad authority to decide how to manage the growing energy demand from crypto mining operations. This means utilities can take proactive measures to ensure the stability of Nebraska’s power grid without having to wait for emergencies to act.

Nebraska’s decision comes amid a nationwide debate over how to handle the rising energy demands of cryptocurrency. While some states welcome the industry with open arms, others are tightening regulations to manage its environmental and infrastructure impact.

For instance, Arizona recently passed a law protecting small-scale crypto miners and blockchain node operators from local zoning restrictions, recognizing their work as a matter of statewide interest. Meanwhile, Kentucky has clarified that crypto mining and staking are not to be treated as securities, offering legal protection to individuals and businesses involved in the space.

During his 2024 campaign, President Donald Trump advocated for increased domestic Bitcoin mining, calling it essential to maintaining U.S. energy independence and resisting centralized digital currencies.

Governor Pillen has not yet commented publicly on LB 526. If he approves the bill or lets the review period lapse without a veto, Nebraska will join the growing list of states enacting tailored crypto mining policies.

As the industry expands and demands more power, states like Nebraska are looking to strike a balance, supporting technological growth while protecting public infrastructure. This new bill could serve as a blueprint for others grappling with the same challenge.

Crypto companies like Canaan Inc. (NASDAQ: CAN) are likely to welcome laws like the one passed by the legislature in Nebraska since the measures seek to facilitate the growth of the industry while also anticipating likely challenges to grids and other infrastructure.

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