Mayor Eric Adams of New York City is vocally opposing the rule governing cryptocurrency mining. The bill would make it illegal to mine bitcoins in New York City for two years. The law targets miners of Proof of Work (PoW) cryptocurrencies that do not utilize renewable energy sources.
Under the proposed law, such miners would be subject to a two-year moratorium. In addition, the Environmental Conservation Department of the state of New York is investigating the effects of mining on the natural environment. On June 3, the Assembly of the state passed the law.
It is awaiting Governor Kathy Hochul’s signature to become a law. On Monday, Mayor Adams announced his intention to recommend to Governor Hochul that the Governor veto the measure.
Adams thinks that the law is regressive. As a result, it could cause significant economic harm to the people living in the state. In the past, Mayor Adams has demonstrated a steady commitment to supporting the cryptocurrency industry. When it came time to pay his salary, he was willing to receive payment in bitcoin rather than cash.
Adams maintains his position on crypto regulations
Adam is on the miners’ side in their fight against the measure they oppose. He believes that there should be no barriers in the way of miners who want to take part in the state’s economic growth and development. Eric Adams will likely convince the Governor to veto the bill.
He stated that the Governor needs to realize that the measure will not produce the desired results. Anne Kelles, a member of the Assembly, is concerned with this matter. Her main concern is that, as a result, the state may not meet its objective of reducing overall carbon emissions by 85 percent by the year 2050.
The state has set a goal for the year 2020 of generating more than fifty percent of its electricity from renewable energy sources. As a result, the state of New York has decommissioned a significant portion of its more mature electrical systems powered by fossil fuels. Assembly member Kelles was quoted as saying bizarre things to the New York Post on June 13 about the Mayor’s support of the miners.
According to the statement made by the member of the Assembly, the Mayor is essentially requesting that New York “go back to the stone age of bitcoin.” The Post claims that Mayor Adams voiced his disapproval of the miners’ cause in February.
In December 2021, CBECI carried out some data collection. They determined that New York State is the fourth-largest producer of hash power in the United States. On June 3, experts in the mining business revealed to CNBC that the decision to ban miners was doomed to fail. The repercussions may ripple throughout the entirety of the industry. However, the CEO of GEM mining predicts that miners will move to more favorable states.
Renewable energy uptake is getting bigger
The Bitcoin Mining Council estimates that around half of the electricity consumed by Bitcoin miners comes from renewable sources worldwide. In the mining business, efforts are being made to lessen the sector’s dependency on fossil fuels. Therefore, making the creation of new technology an absolute prerequisite.
Adams’ opposition to the bill is only part of the story. He is making the case that miners require more time. The state must have an understanding that the process of lowering carbon emissions is a slow and gradual one.
The mining industry has a significant dependence on all forms of fossil fuel. The city of New York City requires a method to bring it under control. However, we must always keep everyone else, including investors in the sector, in mind. If we continue in this manner, we will cause more significant damage.
