New York Crypto Mining Moratorium Bill Goes to Hochul
(Bloomberg) -- New York state lawmakers passed a bill that would trigger a two-year moratorium on new permits for certain power plants involved in Bitcoin mining.
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The measure, which was approved by by a vote of 36 to 27 in the state Senate early Friday morning, now moves on to Governor Kathy Hochul for consideration. The state Assembly approved the bill last month. Hochul has 10 days to sign or veto the legislation.
If the bill becomes law, it would be among the most significant restrictions in the US against the energy-intensive process. It’s also in stark contrast to policies in states such as Texas and Georgia, which are using tax benefits and less restrictive regulations to court companies to relocate operations. New York has long been seen as an attractive place for crypto mining firms to set up due to cheap hydroelectric energy sources. In recent years, firms have also repurposed old coal and gas powered facilities.
Crypto industry groups as well as environmental conservationists have been closely monitoring the decision as lawmakers weigh the pros and cons of digital assets mining that use energy intensive proof-of-work authentication methods for cryptocurrencies like Bitcoin.
Democratic Senator Elizabeth Warren of Massachusetts has weighed in on the New York proposal, raising concerns over the energy usage and environmental impact of Bitcoin miners. Senators Kirsten Gillibrand, a New York Democrat, and Wyoming Republican Cynthia Lummis, who has been a strong advocate for the crypto industry, are working on a sweeping bill to regulate the volatile asset class, including an analysis on the environmental impact of energy consumption from crypto mining.
The New York bill calls for a two-year halt on new permits for miners that use carbon-based fuel and also, requires an environmental impact study with an eye on meeting climate goals established under a 2019 statute. Existing mining firms or ones currently undergoing the permit renewal process would be allowed to continue operations.
Local legislators and environmental groups and climate advocates have been vocal opponents of the Bitcoin mining companies in the state. New York delayed its decision on whether to allow operations by public miner Greenidge Generation Holdings Inc. to continue.
Crypto mining became a hot button issue after China and others banned the practice last year, driving much of that activity to North America.
Read more: Texas Bitcoin Miners Seek Cheap Power, Land and a Place to Stay
The rise of so-called miners, which use high-powered computers to process transactions and collect rewards in crypto, has drawn ire from climate advocates worldwide. Meanwhile, industry groups including Blockchain Association have criticized the moratorium, saying it could hamper business growth.
Read more: China Warns State Firms on Crypto Mining, Mulls Punitive Steps
(Adds perspective on the outlooking in mining across the US, starting in the third paragraph.)
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