Nebraska is on the verge of enacting sweeping new regulations aimed at curbing the impact of large-scale cryptocurrency mining on the state’s power grid. On Tuesday, lawmakers unanimously passed Legislative Bill 526 in its final reading, advancing the proposal to Governor Jim Pillen for final approval. If signed into law, the measure will take effect on October 1, 2025.
The legislation, introduced earlier this year by State Senator Mike Jacobson, specifically targets crypto mining operations that draw one megawatt or more of electricity—effectively excluding hobbyist miners while holding major commercial facilities accountable. Under the bill, high-consumption miners would be required to shoulder the costs of necessary infrastructure upgrades, publicly disclose their annual energy usage, and agree to temporary power shutoffs during peak grid stress.
The bipartisan 49–0 vote reflects growing concerns about the strain crypto mining places on local power systems, especially as the industry continues to expand in rural states with relatively cheap electricity. If enacted, LB 526 would establish Nebraska as one of the few U.S. states implementing direct oversight of crypto mining’s energy footprint without imposing an outright ban.
Utilities Gain Oversight Power Under New Bill
Under Nebraska’s proposed legislation, public power suppliers—including municipal utilities and regional power districts—would gain new authority to assess and manage the energy demands of large-scale crypto mining operations. The bill allows these entities to conduct load studies, determining infrastructure strain before requiring compliance from mining facilities.
While the law mandates that enforcement be fair and nondiscriminatory, it also grants utilities broad flexibility to act preemptively. This discretion is seen as a strategic move to equip local energy providers with the tools to respond to rising electricity demands as crypto mining scales across the state.
U.S. States Split on Crypto Mining Regulation
Nebraska’s move to regulate high-energy crypto mining arrives amid growing divergence among U.S. states over how to handle the sector. While Nebraska pushes for utility-level oversight of large-scale operations, other states are actively embracing crypto mining as a strategic asset.
During his 2024 campaign, President Donald Trump publicly endorsed the idea of completing Bitcoin’s remaining supply within U.S. borders—framing it as essential to achieving “energy dominance” and resisting centralized financial control via digital currencies. That rhetoric has emboldened crypto-friendly legislation elsewhere.
In Arizona, lawmakers passed HB 2342 last month, protecting home-based miners and blockchain node operators from municipal zoning crackdowns. The law establishes such activities as issues of statewide interest, effectively preventing local interference. Kentucky followed suit in March with a bill confirming that crypto mining and staking are not securities and ensuring the legal right to self-custody digital assets.
In contrast, Nebraska is treading a more cautious line. With LB 526 now awaiting executive review, Governor Jim Pillen has five legislative days (excluding Sundays) to either sign or veto the measure. If he takes no action, the bill will become law by default. So far, his office has not issued a statement regarding the legislation’s future.
Quick Facts
- Nebraska lawmakers unanimously passed Legislative Bill 526 to regulate crypto mining operations using over one megawatt of electricity.
- The bill requires commercial miners to pay for grid upgrades, disclose energy use, and agree to shutdowns during peak demand periods.
- Local utilities would gain new authority to study and manage crypto-related energy consumption under the measure.
- States remain divided on crypto mining, with Arizona and Kentucky passing pro-mining laws while Nebraska opts for cautious regulation.
