New York State passed a bill that would suspend certain types of cryptocurrency mining operations that utilize carbon-based energy. If the assembly bill is approved by New York Gov. Kathy Hochul, the policy would impose a two-year ban on proof-of-work (PoW) mining.
New York PoW Mining Suspension Legislation Headed to Governor Kathy Hochul’s Desk
New York-based lawmakers have filed a bill aimed at banning PoW mining operations that use carbon-based energy. Assembly Bill A7389C was written and sponsored by New York State Congresswoman Anna Kelles. The Democratic politician from the 125 Congressional District said in an interview that she needed to do something because she felt “the environment around me is a little bit broken.” Kellers further noted that she was so stressed in bed that she “couldn’t sleep”.
New York has implemented aggressive climate goals in recent years, and the state plans to reduce carbon emissions by 85 percent by 2050. Assembly Bill A7389C does not discuss how bitcoin mining could improve renewable energy demand or reduce emissions. ESG research released in May suggested that bitcoin mining has the potential to eliminate 0.15% of global warming by 2045. Furthermore, Bitcoin’s network emissions are only 0.08% of global CO2. Additionally, Assembly Bill A7389C does not discuss carbon and military violence associated with USD proof-of-work algorithms.
Assembly Bill A7389C has been passed by the New York Assembly and Senate, and will soon be delivered to Democratic New York Governor Kathy Hocher. If Hochul signs the bill, it will begin to suspend certain types of cryptocurrency mining operations. A report published by CNBC’s MacKenzie Sigalos explained that members of the crypto industry believe the policy could have ripple effects across the country. Amanda Fabiano of Galaxy Digital said:
New York is setting a bad precedent that other states can follow.
Greenidge Generation Holdings Inc. (NASDAQ: GREE) sent a statement to Bitcoin.com News, noting that the bill would not disrupt the company’s operations in New York. “The language of the bill makes it clear that the original sponsor of the bill has confirmed that the legislation will not apply to Greenidge’s business,” Greenidge said Friday. “If the legislation is signed into law, our fully permissible power generation and cryptocurrency data center in Dresden, New York, will continue to operate uninterrupted.”
Perianne Boring told reporters while speaking with Sigalos, founder and president of CNBC’s Digital Chamber of Commerce, that the suspension was a setback. “This is a major setback for the state and will kill its future as a leader in technology and global financial services,” Boring detailed. More importantly, this decision will eliminate vital union jobs and further disenfranchise the many underbanked populations living in the Empire State,” added the Digital Chamber President.
What do you think of New York’s moratorium on certain types of cryptocurrency mining operations? Do you think Governor Kathy Hochul will sign the bill? Let us know what you think about this topic in the comments section below.
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