Despite a significant lobbying campaign by cryptocurrency industry groups opposed to the bill, New York became the first U.S. state to implement a temporary moratorium on new bitcoin mining permits at fossil fuel plants.
The proposal, which Governor Kathy Hochul signed into law, will impose a two-year freeze on cryptocurrency mining businesses looking for permission to turn fossil fuel plants in the state into mines.
Additionally, it restricts ongoing operations to continuing to use the same amount of electricity. Mines attempting to use alternate forms of renewable energy are unaffected.
The electronic processing of bitcoin transactions is known as cryptocurrency mining.
The electronic processing of bitcoin transactions is known as cryptocurrency mining. The biggest cryptocurrency in the world, Bitcoin, operates on a proof-of-work (PoW) system where miners compete to process the following batch of transactions.
The measure aims to reduce and evaluate the industry’s environmental impact. The largest cryptocurrency in the world, Bitcoin, has a carbon footprint that is similar to that of Belarus on an annually basis.
National bitcoin industry associations have attempted to persuade Hochul, a Democrat, to veto the law without success. In the most recent midterm elections, Hochul defeated Lee Zeldin, who was viewed as being more pro-crypto.
“no other industry in the state has been sidelined like this for its energy usage.” according to crypto advocacy group Chamber of Digital Commerce, which argued the measure in a statement.
To date, no other industry in the state has been sidelined like this for its energy usage. This is a dangerous precedent to set in determining who may or may not use power.
— Chamber of Digital Commerce (@DigitalChamber) November 23, 2022