A BILL for an Act to create and enact a new section to chapter 11-33, a new section to chapter 40-47, a new chapter to title 51, and a new section to chapter 58-03 of the North Dakota Century Code, relating to blockchain technology and protection for digital asset mining.
HB1239 would create a broad set of protections for blockchain and digital asset activity in North Dakota. The bill defines terms such as blockchain protocol, digital asset, node, self-hosted wallet, hardware wallet, staking, and central bank digital currency (CBDC), and then sets out rules limiting government interference with digital asset use. It would prohibit state and local governing authorities from requiring or accepting CBDC payments, from participating in federal CBDC testing, and from restricting individuals or businesses from accepting digital assets as payment for lawful goods and services.
The bill also protects access to blockchain networks by allowing people to operate nodes, develop software on blockchain protocols, and participate in staking. In addition, it creates zoning and noise-related protections for digital asset mining operations in residential, commercial, and township areas. Residential mining would be allowed so long as local noise ordinances are followed, while counties, cities, and townships would be barred from imposing mining-specific restrictions that are more burdensome than general noise rules or from changing zoning without notice and an opportunity to comment. Digital asset mining businesses drawing more than one megawatt of power could appeal zoning changes to district court.
If enacted, HB1239 would add new sections to chapters 11-33, 40-47, and 58-03 and create a new chapter in title 51 of the North Dakota Century Code. It would limit the regulatory authority of counties, cities, townships, and other governing authorities over digital asset mining, digital asset payments, and blockchain participation, while also creating a legal framework that favors continued operation of mining facilities and related blockchain activities. The bill would affect local zoning, noise enforcement, payment policy, and the ability of public entities to engage with or test CBDC systems.
The bill appears to have been driven by a pro-crypto, pro-blockchain policy approach, emphasizing protection for miners, node operators, and users of digital assets. However, the available record shows no committee transcripts or recorded votes, and the bill ultimately failed on February 17, 2025. That suggests the proposal did not advance, but the provided materials do not show a detailed public debate or a clear split in recorded support and opposition.
The main points of contention likely centered on state and local control versus industry protection. Local governments would lose flexibility to impose mining-specific noise limits, zoning changes, or other restrictions that do not apply to comparable businesses, and they would be required to provide notice and comment before rezoning a mining operation. Another likely source of concern is the bill’s prohibition on accepting or testing CBDC, which could be viewed as preempting future public-sector payment experimentation. The bill also distinguishes large-scale mining operations by using a one-megawatt threshold, which may have raised questions about energy use, land use, and the burden on neighborhoods and utilities.