Lawmakers in Nebraska have unanimously passed a bill overseeing Bitcoin mining operations in the US state. LB 526, which cleared its final reading on Tuesday with a 49-0 vote, introduces new infrastructure and reporting requirements without placing outright limits on crypto mining activity.
The bill is awaiting Governor Jim Pillen’s signature to be enacted as law. If approved, it will go into effect on October 1, 2025.
Nebraska Lawmakers Unanimously Support Bill Requiring Bitcoin Miners To Publicise Activities
LB 526, which Senator Mike Jacobson introduced in January, is a bill targeting facilities that consume one megawatt or more of electricity, a threshold that applies to all commercial Bitcoin and crypto mining activity in the state. However, the bill does not take into account small-scale home miners.
It requires large-scale crypto miners to report the cost of infrastructure upgrades to their operations, publish their annual energy usage for public reading, and agree to have their electricity service suspended during a power grid strain.
LB 526 also permits power suppliers to conduct load studies before implementing the state government’s regulations. Suppliers must ensure the measures are fair and non-discriminatory, and the legal language gives them broad discretion to handle the growing energy demands associated with crypto mining.
However, the bill does not account for environmental concerns like carbon emissions and heat dissipation, focusing its attention on grid stability and electricity supply. This is in tandem with similar laws in Texas, where miners scale down or switch off when the power grid is strained, especially during winter.
LB 526 Supports Innovation In Crypto Mining, Focusing on Conservative Energy Usage
Marathon Digital is the only major Bitcoin mining company in Nebraska that already complies with the new grid-focused legal framework. Earlier this year, the company improved its facility in Kearney, focusing on enhancing mining efficiency and output. Marathon’s operations may serve as the model for how Bitcoin miners are expected to respond to infrastructure regulations.
Although the bill may impact the cost structure of Bitcoin miners in the state, especially with the obligations tied to power grid contributions, it does not restrict the companies from expanding their facilities or purchasing newer types of equipment. This ensures that the state is open to doing business with crypto mining firms.
Given the already shrinking profits for miners, the new rules could dramatically shift future crypto mining development in Nebraska. The model promotes moderate regulation by supporting the industry while protecting the energy infrastructure, and is set to influence neighboring states that are exploring ways to oversee crypto mining activities within their jurisdiction.
Lawmakers decided not to limit Bitcoin mining operations, opting for utility-based governance rather than an approach on the environmental impact front. LB 526, which gained unanimous support, reflected the bipartisan agreement on regulating energy-heavy industries without halting innovation in their respective fields.
Nebraska’s LB-526 Could Become The Gold Standard For Bitcoin Mining Regulation
During his 2024 campaign, President Donald Trump endorsed Bitcoin mining, advocating for the remainder of the cryptocurrency’s supply to be mined in the United States. He stated that the industry is key to achieving “energy dominance” and protecting against the rise of a central bank digital currency-based (CBDCs) financial system.
As the next step, an executive review of the bill will be conducted by the Governor’s office, after which it will either be signed or vetoed. If the Governor does not make a decision in five legislative days, the framework will automatically become law.
As Bitcoin mining continues to expand across the US, states like Nebraska could guide future regulatory oversight on the industry, with transparent reporting of costs and energy usage becoming the standard.