- Nebraska passes LB 526, targeting crypto miners using over 1MW of power with new grid rules.
- Law mandates energy reports, grid upgrade payments, and outage compliance from large-scale mining firms.
- Arizona vetoes crypto bills as Nebraska moves forward, highlighting contrasting state approaches.
Nebraska became the first state in the United States to pass regulations governing electricity use by cryptocurrency mining operations. Legislative Bill 526 (LB 526) received approval from legislators on Tuesday and targets mining operations consuming one megawatt or more of electricity. Governor Jim Pillen will make his final decision on the legislation within the next five legislative days by choosing to sign or veto it. The bill becomes law without intervention.
Bill Aims at Major Cryptocurrency Mining Activities
The law mandates that crypto mining facilities consuming more than 1 megawatt of power must comply with various new requirements. These encompass required contributions for grid infrastructure improvements, public reporting of yearly electricity consumption, and consent to temporary outages during peak load periods. The initiative seeks to stop uncontrolled energy usage from interfering with Nebraska’s electrical grids.
Senator Mike Jacobson, who sponsored the bill, highlighted the significance of upholding a dependable energy infrastructure. He mentioned that the law enables Nebraska to handle the increasing industrial demand from cryptocurrency activities without jeopardizing energy availability for other industries. The law specifically avoids targeting small-scale or home-based miners, ensuring its focus remains on high-power commercial activities.
New Rules Empower Public Utilities
LB 526 gives public utilities, including municipal providers and public power districts, the authority to conduct load studies and enforce energy usage limits. Under this framework utilities can manage operations that consume a lot of power and maintain non-discriminatory rules that treat crypto businesses fairly.
The wording of the bill gives energy suppliers the flexibility to manage changing energy needs. The established provisions work to maintain grid stability during periods of high demand while continuing to allow innovation in digital assets. The new regulation will become active on October 1, 2025, after receiving official approval.
Nebraska Moves Ahead as Arizona Steps Back
As Nebraska progresses with its regulatory strategy, other states are moving in the opposite direction. During the same week, Arizona Governor Katie Hobbs vetoed two planned bills, SB 1373 and SB 1024, intended to permit the state to possess Bitcoin and accept it for tax payments.
Governor Hobbs expressed worries regarding instability and possible financial threats to state assets. Her choice represented a shift from Arizona’s earlier crypto-friendly position, which encompassed backing for Bitcoin ATM regulations. The veto faced backlash from segments of the crypto community, who saw it as a lost chance to incorporate digital assets more extensively into state finance.
Nebraska’s legislation has garnered national interest, as industry participants observe how the initiative might impact upcoming regulatory structures. The decision arrives as conversations about energy use and blockchain activities become increasingly noticeable throughout the United States.
