In a noteworthy development for the Bitcoin community, Nebraska has taken a proactive stance in the protection of users’ rights by introducing a pioneering bill. The bill, sponsored by Senator Eliot Bostar, advocates for freedom to self-custody, mine, and run a node.
Senator Eliot Bostar Introduces New Bill
This legislative move mirrors a similar initiative recently undertaken in Missouri, underscoring a growing momentum in state-level advocacy for Bitcoin enthusiasts across the United States.
Notably, Senator Bostar, the bill’s sponsor, collaborated with the Satoshi Action Fund in drafting the legislation, which places Nebraska at the forefront of states advocating for these crucial aspects of Bitcoin engagement.
Dennis Porter, CEO and co-founder of Satoshi Action Fund, shed light on the bill’s key provisions on social media platform X and called for community support to ensure its passage into law.
Key Provisions of the Bill
The comprehensive bill proposes the elimination of discrimination against Bitcoin miners. Key provisions of the bill highlight the state’s progressive stance on digital asset activities. In particular, individuals engaging in home mining are permitted activity, provided they adhere to local noise ordinances.
Moreover, in a noteworthy departure from traditional regulatory frameworks, the bill explicitly states that individuals involved in digital asset mining or operating nodes on a blockchain protocol are exempt from obtaining licenses under the Nebraska Money Transmitters Act.
This exemption streamlines the regulatory process for those participating in these emerging aspects of the digital economy.
The bill also includes provisions aimed at protecting the rights of individuals in their use of digital assets. It explicitly states that neither the state nor any political subdivision thereof shall prohibit, restrict, or impair an individual’s ability to use a controllable electronic record for the purchase of legal goods or services.
Furthermore, the bill extends its protection to the use of self-hosted, third-party, or hardware storage wallets for self-custody of controllable electronic records. By doing so, it safeguards individuals’ autonomy over their digital assets, recognizing the importance of secure and private storage methods.
Interestingly, the bill, once enacted into law, also aims to eliminate state capital gains taxes on Bitcoin transactions under $200 and prevent unfavorable regulations that could hinder future innovation in the Bitcoin space. However, it clarifies that:
“This section does not prohibit the state or any political subdivision thereof from imposing or collecting a tax, withholding, assessment, or charge that would otherwise be collected if the transaction had taken place with United States currency.”
Call to Action
Dennis Porter took to X to announce Nebraska’s groundbreaking bill, emphasizing its role in preventing detrimental digital asset regulations that could impede future Bitcoin development.
Porter’s tweets serve as a rallying call to the Bitcoin community, encouraging support for the bill. He elaborates on the significance of the legislation, emphasizing its alignment with the foundational work of Congressman Mike Flood.
Additionally, Porter revealed plans to introduce similar bills in over 13 different states this year. He stated:
“We plan to introduce 13 bills in 13 different states (at least) in 2024. Each time a bill is introduced, lawmakers in the state often hold a hearing to receive input from the public.”
