Last week, New York Senates passed a bill proposing a two-year moratorium on crypto and Bitcoin mining activities based on carbon-energy sources. This particular bill already passed the State Assembly in April and now awaits a green light from the governor’s office to become effective.
However, the state’s governor Kathy Hochul is still considering whether to sign the bill, Reuters reported Tuesday.
There is a balancing act involved
The governor’s office disclosed on Monday that she is still weighing whether to sign the moratorium on carbon-based crypto mining activities. Governor Hochul recognizes the environmental impact of mining activities powered by energy generated from fossil fuels. However, the opportunities presented by crypto mining are not to be ignored.
There is a balancing act involved here, very much a balancing act. […] We have to balance protection of the environment, but also protect the opportunity for jobs that go to areas that don’t see a lot of activity, and making sure that the energy that’s consumed by these entities is managed properly.Governor Kathy Hochul
Why is NY getting rid of Bitcoin mining?
The New York authorities had a goal of reducing statewide greenhouse gas emissions by 85% by 2050. Giving several Bitcoin mining activities are operated using carbon-based energy, it’s a primary target for the state authorities, especially because mining consumes an extensive amount of energy.
If signed, the bill enacts a two-year moratorium that will prevent Bitcoin mining operators from expanding or renewing permits. Also, new entrants would not be allowed to come online. This doesn’t apply to mining operations based on 100% renewable energy but will make New York the first major state in the US to ban cryptocurrency mining.
It’s speculated that many other US states could follow suit if the bill eventually becomes a law, which might affect the country’s dominance in Bitcoin’s global hash rate.