Nebraska Lawmakers Approve Crypto Mining Limits in Final Reading

Crypto miners in Nebraska may soon face new regulations after state lawmakers unanimously passed a bill designed to hold large-scale operations accountable for their impact on the state’s energy infrastructure. 

LB 526, which cleared its final reading on Tuesday with a 49-0 vote, now heads to Governor Jim Pillen’s desk for approval. If enacted, the law would take effect on October 1 of this year.

Introduced by State Sen. Mike Jacobson (R-Neb) in January, the legislation targets facilities that consume one megawatt or more of electricity. That threshold seeks to capture all primary commercial mining operations rather than small-scale hobbyists. 

If signed into law, the bill would require those miners to pay for infrastructure upgrades their operations require, report their annual energy usage publicly, and agree to have their electricity service interrupted during periods of grid strain.

The proposed law grants public power suppliers, including municipal utilities and public power districts, the authority to conduct load studies before imposing these requirements.

Suppliers must ensure the measures are fair and nondiscriminatory, but the language gives them broad discretion to manage the growing energy demands associated with crypto mining. 

Split on crypto mining

LB 526’s advancement comes as states across the U.S. take diverging approaches to crypto mining regulation. 

President Donald Trump, during his 2024 campaign, advocated for the remainder of Bitcoin’s fixed supply to be mined within U.S. borders, calling it key to achieving “energy dominance” and protecting against the rise of a central bank digital currency.

Just last month, Arizona enacted HB 2342, which shields at-home miners and blockchain node operators from local zoning restrictions, declaring such activities a matter of statewide concern. 

Meanwhile, Kentucky signed a law in March that formally protects users who self-custody crypto and confirms that mining and staking are not considered securities.

The next step in Nebraska’s legislative process is its executive review. The governor has five legislative days, excluding Sundays, to sign or veto the bill. 

If he takes no action, the bill will automatically become law without his signature. As of now, the Governor’s office has not commented on LB 526. It did not immediately respond to Decrypt’s request for comment.

Edited by Sebastian Sinclair