The New York Senate on Friday approved a moratorium on mining of cryptocurrencies that use the Proof of Work (PoW) consensus mechanism, such as Bitcoin.
New York is set to extend a two-year moratorium on PoW cryptocurrency mining that uses fossil fuels, according to the approved bill by the state Senate this Friday.
The proposed law achieved 36 votes in favor in the legislative session of the Senate and 27 votes against, leaving New York Governor Kathy Hochul with the final say on its approval and implementation.
Hochul has 10 days to sign this bill into law so it can go into effect.
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Moratorium on Bitcoin and Ethereum mining
The moratorium that the bill may extend to cryptocurrency mining in the coming days will affect the operations of a significant portion of miners in the crypto industry.
According to Foundry, a subsidiary of Digital Currency Group, This moratorium will limit innovation and technological development. throughout the state.
The bill will prevent the issuance of new permits or licenses for mining companies that use fossil fuels. These miners will also not be able to renew their licenses within the time frame established in the moratorium or request authorization to expand their infrastructure or operations.
New York is the 4th largest state in cryptocurrency mining
The bill in question seeks to stop the advancement of fossil fuel-based crypto mining activities taking place within the state, in order to analyze their environmental impact in order to comply with New York's ecological and climate objectives.
Cryptocurrency mining is an activity that has spread significantly in the state. New York currently occupies the 9,8% of the total Bitcoin hash rate share that exists in the United States, which in turn leads Bitcoin mining worldwide, according to data from the Centre for Alternative Finance at the University of Cambridge (CBECI).
Source: CBECI
The rapid growth of crypto mining has sparked the interest of lawmakers and regulators, who are now looking to address Bitcoin and other cryptocurrency mining to reduce energy consumption and environmental impact.
As reported by this media, the administration of Joe Biden, current president of the United States, is also taking its first steps in formulating new policies that will help the world power minimize energy consumption in cryptocurrencies.
The White House will begin exploring this sector of the crypto industry to assess current energy costs, carbon emissions and climate impact.
Miners seek support from Governor Hochul
Meanwhile, in New York, faced with the threat that the moratorium represents for PoW cryptocurrency mining, such as Bitcoin y Ethereum, mining companies are seeking Governor Hochul's support to prevent the enactment of such a law.
The Blockchain Association has also called on Governor Hochul to veto the bill, saying it does not protect the environment and will only drive miners out of the state.
Likewise, legislators who do not support the proposal, such as Todd Kaminsky and Robert Smullen, warn that New York could lose its appeal as a technology hub and trigger a possible chain reaction by other states that are also considering a similar situation in cryptocurrencies.
Foundry said states like Colorado and Washington are delving deeper into the crypto industry to understand the technology, its benefits and risks, before taking drastic measures that would limit its development, as New York is doing.
Foundry also recalled that PoW-based mining has encouraged millions of dollars of investment in the state and the country. Therefore, limiting it could shorten the economic stimulus and significantly affect the creation of new jobs.
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