Miners Threaten to Quit New York as State Nods to Bitcoin Mining Ban
Crypto miners are ready for a big showdown with lawmakers.
The relatively low cost of providing New York with electricity is quickly making the state a thriving hub for cryptocurrency miners.
However, several neighbors and environmental organizations have expressed concern about the impact of pollution due to the rapid growth of the state.
On Friday, the New York State Legislature enacted a law that prohibits the use of new permits for certain fossil fuel electrical installations in bitcoin mining.
For any new Proof-of-Work (PoW) mining, the bill, which passed the lower house earlier this year, imposes a two-year ban. Concerns about the impact of crypto mining on the environment explain most of his grievances with the industry.
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Table of Contents:
- New York Passes Bill Banning Crypto Mining
- Miners threaten to leave the Big Apple
- “This bill is a job killer and sends a horrible message to crypto entrepreneurs.”
New York Passes Bill Banning Crypto Mining
The Senate voted 36-27 in favor of the bill. Mining companies that already have a license or are actively applying for a new one will be able to continue operating.
Gov. Kathy Hochul will have the final say on the legislation when she signs it or rejects it.
According to the founder and president of the Digital Chamber of Commerce, Perianne Boring, New York would be the first state in the United States to ban bitcoin mining and blockchain technology infrastructure if the measure is approved by the governor.
Gov. Kathy Hochul will be the one to decide whether or not the bill deserves her approval (WSJ).
The New York Times recently reported that the CEO of a company that operates a disused aluminum plant that has been turned into a crypto mining operation donated $40,000 to Hochul last month.
Miners threaten to leave the Big Apple
On Friday, multiple media outlets reported that mining companies based in upstate New York had threatened to move elsewhere if the proposed ban went through.
If the measure passes, New York will be a “permanent reflection” for bitcoin miners and the industry in general, according to Kyle Schneps, head of public policy at Foundry, one of the largest miners in the United States.
In an effort to reduce the state’s carbon footprint, proponents of the bill argue that dirty energy sources are to blame.
In response to the move, the Blockchain Association launched a campaign to oppose the moratorium.
Total crypto market capitalization at $1.26 trillion on the daily chart | Source: TradingView.com
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In a tweet, Barry Silbert, CEO of Digital Currency Group, said:
“This bill is a job killer and sends a horrible message to crypto entrepreneurs.”
Clark Vaccaro, interim president and chief strategy officer at industry trade organization BaSIC, described the law as “a dark day for blockchain technology, effectively closing the door on a fledgling industry.”
Meanwhile, miners and cryptocurrency advocates also fear that the proposed ban could set off a chain reaction in the United States, leading to similar laws in other states.
Almost 40% of the global hash rate currently comes from the United States
Featured image from Yahoo Finance, chart from TradingView.com
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