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Committee holds over blockchain/mining bill pending technical fixes on finance and zoning language
Summary
Discussion of House Bill 1239, which addresses protections for digital-asset mining and exemptions from money-transmitter licensing, was continued so drafters can resolve Department of Financial Institutions concerns and local zoning/noise issues.
House Bill 1239 — a measure concerning blockchain technology and digital-asset (proof-of-work) mining, including an initial exemption from money-transmitter licensing — was held over by the committee while sponsors and regulatory staff work through technical language.
Department of Financial Institutions staff said an original draft would have changed definitions in the money-transmitter statute in a way that could have unintentionally expanded DFI’s regulatory reach into other businesses. DFI’s representative, Corey Krebs, told the committee that negotiated amendments removed the problematic money-transmitter language and that DFI would be neutral on the revised bill.
Committee members raised additional concerns the bill does not yet address: local zoning and noise ordinances, electricity consumption and siting of mining operations, and whether township-only noise language is sufficient when counties or cities typically adopt ordinances. Several political subdivisions testified in the hearing and remain concerned about municipal/zoning impacts.
Representative Volmer said the amendment removing the money-transmitter exemption addressed DFI’s principal concern but recommended further work on zoning and noise. Representative Shots expressed worry about noise and power usage and suggested miners be sited in remote areas and produce their own electricity. Representative Casper noted the bill’s language referenced townships and asked whether counties and cities should be included.
After discussion, the committee held the bill to allow sponsors and agencies to produce agreed technical language on the money-transmission definition and to further address zoning and noise language before final committee action.
