Committee hears bill to limit local restrictions on digital-asset mining and data centers

Bismarck — The House Industry, Business and Labor Committee heard testimony on House Bill 1239, the ‘‘Freedom Act,’’ which its sponsor, Representative Nathan Thomann of District 34, described as a bill to protect digital-asset mining and similar data-center activity from new, industry-specific local restrictions and to exempt some mining activity from money-transmitter licensing.

The bill ‘‘provides for protections for digital asset mining, exemptions from money transmitter licenses, including zoning prohibitions for more restrictive zoning,’’ Representative Thomann said. He told the committee the measure is intended to prevent local governments from carving out a ban that would apply only to miners or data centers and not to other businesses in the same zone.

The measure drew questions and opposition from officials who said parts are unnecessary or create regulatory gaps. Lisa Cruz, commissioner of the Department of Financial Institutions, told the committee that miners who only validate blocks are already excluded from the state money-transmitter statute and that the bill’s licensing exemption could…