The state of New York has introduced a new bill that if passed, would officially end all future proof of work (PoW) mining operations that want to call the Empire State home.
New York Could End Crypto Mining for a While
Right now, the bill is being discussed by the New York State Assembly in Albany, the region’s capital. The bill calls for a moratorium of not less than two years on all crypto mining operations within the state’s borders. The idea is to further study the crypto mining sector and see if emissions are, in fact, a danger to the environment.
New York is clearly a state that cannot seem to make up its mind on crypto. On the one hand, it clearly has a problem with the large number of mining firms that now call the state home. In addition, it implemented what’s known as the BitLicense back in 2014. The document is widely referred to as one of the most damaging pieces of crypto legislation around, as it required heavy fees and vast amounts of paperwork from any blockchain or crypto firm seeking to do business in the Empire State.
But while New York itself appears rather strict when it comes to limiting crypto prospects, Eric Adams – the mayor of the region’s largest city (NYC) – wants to do away with the BitLicense and turn New York into something of a modern-day tech hub that will allow it to compete with growing crypto hotspots like Miami. Not long ago, Adams said he wants to rid the state of the BitLicense and that he wants crypto taught in public schools, claiming that bitcoin and blockchain were the ways of the future and that kids need to be properly prepared.
There’s a chance that Adams’ plans won’t come to fruition if the New York Assembly winds up getting its way. The moratorium would disallow any crypto mining company from setting up operations in New York unless it agreed to use 100 percent renewable energy.
Amanda Fabiano – head of mining at Galaxy Digital – hates the idea of a moratorium and says that New York would assuredly fall behind when it comes to technological and financial growth should the bill be turned into law. She commented in an interview:
New York will be left behind, losing to other states at best, and at worst, other more progressive nations. New York is setting a bad precedent that other states could follow.
Headed for Disaster?
Perianne Boring – the founder and president of the Digital Chamber of Commerce – also expressed disdain with the bill, commenting:
If it passes, it will make New York the first state in the country to ban blockchain technology infrastructure.
At the time of writing, roughly one third of energy utilized in New York stems from renewable sources.