Nebraska Passes Bill Adding Costs for Bitcoin Mining Firms

Nebraska’s state legislature has unanimously passed a bill that introduces new requirements and added costs for Bitcoin mining firms operating within the state. The bill, LB 526, mandates that large mining operations cover the cost of infrastructure upgrades, report their energy usage, and permits authorities to interrupt service if necessary. This legislation, while not imposing severe restrictions, signifies a growing trend of regulatory scrutiny towards the cryptocurrency mining industry.

The bill, which is just over two pages long, focuses primarily on the electrical grid rather than addressing carbon emissions or other environmental impacts. This approach is similar to measures taken in Texas, where mining operations have been blamed for brownouts and outages during summer heatwaves. Nebraska’s legislation reserves the right to interrupt mining operations at its discretion, potentially addressing grid stability issues during peak demand periods. Additionally, mining firms will be required to pay for infrastructure upgrades if their operations strain the existing grid, and their energy consumption will be publicly reported.

With the bill now passed unanimously by the state legislature, it awaits the signature of Governor Jim Pillen to become law. Governor Pillen has previously referred to crypto as an “important, emerging industry,” but has not yet commented specifically on mining. Given his previous statements, it is likely that he will sign the bill into law.

Marathon is currently the only Bitcoin mining firm with significant operations in Nebraska. Earlier this year, the company upgraded its hardware at a site in Kearney, a county with a population of 6,600 people. As US Bitcoin mining becomes less profitable, Marathon has been taking on debt to purchase BTC from other sources. The company’s reaction to the new bill will be closely watched, as it could provide insights into how the industry will adapt to increased regulatory scrutiny.

While LB 526 does not impose significant restrictions on Bitcoin mining, it does indicate a willingness by the local government to impose light regulations. This development is noteworthy as it reflects a broader trend of increased regulatory attention on the cryptocurrency industry. The bill’s passage underscores the need for mining firms to be prepared for potential regulatory changes and to adapt their operations accordingly.