Nebraska Lawmakers Pass Bill 526 to Regulate Bitcoin Mining
Nebraska lawmakers have passed Legislative Bill 526 (LB526) with a unanimous 49-0 vote, set to take effect on October 1, 2025. The bill, sponsored by Senator Mike Jacobson, aims to regulate Bitcoin mining operations in the state, giving miners until then to decide their next move.
LB526 mandates that Bitcoin miners with loads of one megawatt (MW) or greater bear the costs of infrastructure upgrades needed to support their demand. An earlier provision for a 2.5¢/kWh tax on mining was removed from the bill. The bill's sponsor insists it is agnostic toward Bitcoin, but critics argue it surgically targets one user class.
Mining operators must accept interruptible service, meaning they will be the first to have power cut during grid tightness. Utilities must publish annual energy usage for each mining operation, a requirement not imposed on other data-heavy sectors. After conducting a 'load study', utilities can demand direct payments or letters of credit from miners.
Governor Jim Pillen, influenced by legislative members and advocacy groups supporting the bill, is expected to sign LB526 into law. Large mining firms like Marathon Digital Holdings have warned that further expansion in Nebraska may be scrapped if the bill passes.
With LB526 set to take effect on October 1, 2025, Nebraska's Bitcoin miners must decide whether to adapt to the new regulations, relocate, or fold. The bill's impact on the state's mining industry and its potential implications for energy consumption remain to be seen.
