New York’s state legislature passed legislation that prohibits certain types of cryptocurrency mining that use carbon-based energy sources. If Kathy Hochul approves the Assembly bill, it will ban Proof-of-work mining for two years.
New York PoW Mining Moratorium Legislation to Be Delivered to Governor Kathy Hochul’s Desk, Crypto Advocates Say the Bill Is a ‘Significant Setback for the State’
New York lawmakers submitted a bill for the ban of PoW mining operations using carbon-based energy resources. Anna Kelles, a New York State Assemblywoman sponsored Assembly Bill A7389C. The Democratic Party politician from Assembly district 125 said in an interview she needed to do something because she felt “the environment kind of crumbling around” her. Kelles further remarked that it stressed her so much while laying in bed and she was “not able to fall asleep.”
New York’s climate goals have been aggressively implemented in recent years. The state plans to reduce carbon emissions by 15% by 2050. Assembly Bill A7389C doesn’t discuss bitcoin mining as a way to increase renewable energy or reduce carbon emissions. ESG published a May study that showed bitcoin mining can reduce global warming by 0.1%. Moreover, Bitcoin’s network emissions only account for 0.08% of the world’s CO2. Further, Assembly Bill A7389C does not discuss the carbon and military violence associated with the U.S. dollar’s proof-of-work algorithm.
Assembly Bill A7389C was passed both by the New York Assembly as well by the Senate. The bill will be soon delivered to Kathy Hochul, Democratic New York Governor. The bill will be signed by Hochul, which will mean that the moratorium on certain types of crypto mining operations can begin if Hochul approves it. A report published by CNBC’s MacKenzie Sigalos explains members of the crypto industry believe the policy could have ripple effects across the country. Galaxy Digital’s Amanda Fabiano said:
New York sets a poor precedent for other states.
Greenidge Generation Holdings Inc., (NASDAQ:GREE), sent a statement and said that it will not disrupt the New York-based operations. “The bill language plainly states, and the bill’s original sponsor has confirmed, that the legislation will not apply to Greenidge’s operations,” Greenidge said on Friday. “Should the legislation be signed into law, our fully permitted power generation and cryptocurrency data center in Dresden, NY will continue to operate without interruption.”
Speaking with CNBC’s Sigalos, the founder and president of the Chamber of Digital Commerce, Perianne Boring told the reporter that the moratorium is a setback. “This is a significant setback for the state and will stifle its future as a leader in technology and global financial services,” Boring detailed. More importantly, this decision will eliminate critical union jobs and further disenfranchise financial access to the many underbanked populations living in the Empire State,” the Chamber of Digital Commerce president added.
What do you think about New York’s moratorium policy on specific types of cryptocurrency mining operations? Are you sure Kathy Hochul, the governor of New York will sign this bill? Comment below to let us know your thoughts on this topic.
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