Nebraska Passes Bill to Limit Crypto Mining Power

• Nebraska passed a bill regulating crypto miners using over 1MW of electricity.
• Large-scale miners must report usage and pay for infrastructure upgrades.
• The law awaits the governor’s signature and could take effect on October 1.

Nebraska is poised to join the growing list of U.S. states taking a firmer stance on crypto mining. On Tuesday, legislators voted unanimously to pass LB 526, legislation directed at curbing massive-scale cryptocurrency mining operations with high power consumption. The bill sailed through its last legislative hurdle with a 49-0 vote, indicating strong bipartisan support.

Now awaiting Governor Jim Pillen’s signature, the bill is scheduled to take effect on October 1, provided it is signed into law or allowed to pass without action.

Power-Hungry Miners Under Scrutiny

Introduced in January 2025 by State Senator Mike Jacobson (R-Nebraska), LB 526 specifically targets crypto mining facilities that consume 1 megawatt (MW) or more of electricity. This threshold excludes individual miners and small-scale hobbyists, instead placing the regulatory burden on commercial mining operations with significant energy demands.

If enacted, the law would require such miners to:

• Pay for energy infrastructure upgrades required by their operations.
• Publicly report their annual energy usage.
• Accept potential electricity service interruptions during peak demand or energy emergencies.

The legislation empowers public power suppliers including municipal utilities and public power districts to perform load studies and determine when and how to apply these conditions. Although the bill requires fairness and non-discrimination, it also provides utilities with wide latitude to control the grid’s capacity as demand increases.

Diverging State Policies on Crypto Mining

Nebraska’s action is opposite to what’s happened in other U.S. states, mirroring a national split over policy on crypto mining

For example, Arizona recently passed HB 2342, which shields home miners and blockchain node operators from local zoning restrictions. Kentucky, on the other hand, formalized protections for crypto self-custody and clarified that mining and staking are not considered securities.

At the federal level, former President Donald Trump, during his 2024 campaign, advocated for the remainder of Bitcoin’s supply to be mined domestically, linking the effort to “energy dominance” and national sovereignty.

Next Step: Governor’s Decision

Governor Jim Pillen currently has five legislative days (not including Sundays) to sign or veto the bill. If he does nothing, the bill will become law by operation of law. To date, the Governor’s office has made no comment on the issue and has not answered media calls.

For Nebraska, this bill is a shift toward how the state addresses crypto innovation, walking a balance between technological advancement and smart energy usage. If signed, LB 526 could set a precedent for other energy-conscious states looking to regulate crypto mining without stifling the broader blockchain industry.

Highlighted Crypto News Today:

‌Helium (HNT) Eyes $5 Rebound as Bulls Defend $3.90 Support