Nebraska to Make Bitcoin Mining More Difficult with New Bill
The Nebraska Legislature just unanimously approved a bill that would impose some restrictions on Bitcoin mining. While it doesn't impose any major bans, it does introduce new requirements, hurdles, and additional costs for mining companies.
The bill isn’t a major defeat, but the unanimous vote is still noteworthy. Marathon is the only cryptocurrency mining company with significant operations in the state, and its response to these developments could be indicative.
Nebraska to Restrict Bitcoin Mining
Cryptocurrency regulation is sweeping the country as President Trump has made the topic a hot topic at both the state and federal levels. The Republican Party has generally been more welcoming to cryptocurrencies, but it is also divided.
A prime example is Nebraska, where the Republican legislature voted unanimously by a 2/3 majority today to impose restrictions on Bitcoin mining:
“The Nebraska Legislature just approved a bill to regulate Bitcoin mining. LB 526 requires large miners to cover infrastructure upgrades, requires them to report their energy consumption, and allows the state to suspend service. The bill passed unanimously 49-0,” a cryptocurrency policy watcher reported.
LB 526, Nebraska's Bitcoin mining bill, isn't a major blow to companies in the state. It's just over two pages long and fairly straightforward.
Unlike anti-mining bills, it does not address carbon emissions or other environmental impacts. Instead, it focuses almost entirely on the power grid.
In recent years, mining companies in Texas have come under fire for causing blackouts and power outages. The facilities consume huge amounts of power, which can overwhelm the grid during summer heat waves. The Republican-leaning Texas Legislature has passed laws that severely restrict mining, and Nebraska may follow suit.
In particular, the state of Nebraska reserves the right to shut down production at its discretion, which could help solve the problem of abnormally high temperatures.
It also requires mining companies to fund infrastructure upgrades if their operations put a strain on the existing network. Finally, information on the number of mining operations and the amount of energy they consume will be made public.
Now that the state legislature has unanimously approved the bill, all that remains is the governor’s signature. Nebraska Governor Jim Pillen has called cryptocurrency “an important, growing industry,” but has not commented directly on mining. At this point, it seems likely that he will ultimately sign it.
Marathon is currently the only Bitcoin mining company with significant operations in Nebraska. Earlier this year, it upgraded equipment at its facility in Kearney, a county of 6,600. Bitcoin mining in the U.S. is becoming less profitable, and Marathon is taking on debt to acquire BTC from other sources.
In other words, Marathon's reaction to the bill could be indicative. Even if LB 526 becomes law, it's unlikely to significantly curtail Bitcoin mining in Nebraska.
However, this development indicates that local authorities are willing to introduce light restrictions. This in itself makes the situation noteworthy.
Source: cryptonews.net
