On Tuesday, New York Governor Kathy Hochul signed a law banning specific cryptocurrency mining operations that use carbon-based energy sources. A Proof-of-Work (PoW) mining firm will not be permitted to expand, renew permits, or allow new firms to start operations for the next two years unless it employs only renewable energy.
As expected, Gov. Hochul has signed legislation for a moratorium on cryptomining in New York pic.twitter.com/QcQg6LFZ5M
— Nick Reisman (@NickReisman) November 22, 2022
The mining law, passed by the state assembly in April and the state senate in June, respectively, has a two-year moratorium on specific cryptocurrency mining operations using Proof-of-Work consensus mechanisms to validate blockchain transactions. Additionally, the law mandates that the state Department of Environmental Conservation investigate the impact of crypto mining on climate change.
Kathy Hochul stated:
“I will ensure that New York continues to be the center of financial innovation, while also taking important steps to prioritize the protection of our environment,”
“I am signing this legislation into law to build on New York’s nation-leading Climate Leadership and Community Protection Act, the most aggressive climate and clean energy law in the nation, while also continuing our steadfast efforts to support economic development and job creation in upstate New York.”
The law was the subject of intense debate in the state Capitol, with the industry urging Hochul to oppose it and environmental groups urging Hochul and lawmakers to support it.
Zhang, Foundry’s senior vice president of mining strategy, said:
“Not only is it a clear signal that New York is closed for business to bitcoin miners, it sets a dangerous precedent for singling out a particular industry to ban from energy usage.”
Yvonne Taylor, vice president of Seneca Lake Guardian, said:
“Thank you, Governor Hochul, for stepping up to protect New Yorkers from corporate bullies who want to exploit communities like mine in the Finger Lakes. The crypto industry is going to whine that this is a blow, but it’s not. Governor Hochul did the right thing by putting real New Yorkers over the failing outside speculators who choose not to mine crypto in more efficient ways that don’t destroy the climate, environment, and local economies.”
The enforcement of the new law has raised concerns in the mining industry that it may encourage other states to follow suit, negatively impacting the industry.
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