Regulation News
- The New York Senate passed a bill that targets proof of-work (PoW) mining.
- The new bill will impose a two-year moratorium on any new PoW mining projects that are powered by carbon-based fuel.
- Many crypto companies that are based in New York are threatening to leave the state.
On Friday, the New York Senate passed a bill that targets proof of-work (PoW) mining. The bill was passed to address some of the environmental issues that surround crypto mining. The Senate ended up voting 36-27 in favor of the bill.
The new bill will impose a two-year moratorium on any new PoW mining projects that are powered by carbon-based fuel. Already existing mining firms, however, or ones that are in the process of permit renewal, will be allowed to continue operations.
According to Senator Kevin Parker, there is only one such plant currently in operation that will not be impacted by the new bill.
Many people expected the bill to suffer the same fate as last year’s version of the bill after it was turned down by the Senate Environmental Conservation Committee. The chair of the committee, Senator Todd Kaminsky revealed that the reason they did not consider the bill was that they believed that it would lead to “deleterious economic consequences for New York if people perceive it as being hostile to crypto.”
New York is seen as an ideal place for crypto mining firms to set up because of the cheap hydroelectric energy sources.
This is not the case anymore with regards to the new moratorium being passed. Many crypto companies that are based in New York are threatening to leave the state. They would rather work in more mining-friendly states like Texas.
On a related note, the Senate also passed a bill that would create a “cryptocurrency and blockchain study task force” early on Friday.
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