New York legislators approved on Friday a bill banning cryptocurrency mining of some companies that use carbon-based power sources.
21st District Senator Kevin S. Parker sponsors the newly-approved bill. The bill is now on the desk of Governor Kathy Hochul and waiting for approval or rejection.
Bill banning cryptocurrency mining
New York would be the first state in the US to outlaw blockchain technology infrastructure. That is if Hochul passes the measure. This is according to Perianne Boring, founder, and president of the Chamber of Digital Commerce.
The Senate Bill S6486D entitled, “An act to amend the environmental conservation law, in relation to establishing a moratorium on cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain transactions; and to require a comprehensive generic environmental impact statement review.” seeks a two-year freeze on the operations of some cryptocurrency mining firms that utilize proof-of-work techniques.
Legislators who support the bill claim they want to reduce the state’s carbon impact by clamping down on miners. These are the miners that utilize energy generated by power stations that use fossil fuels.
So if it succeeds, a proof-of-work mining firm that does not utilize 100 percent renewable energy for two years would not get permission to grow or renew licenses. In addition, new entrants will also not get permission to come online.
The New York state of mind doesn’t appear to include crypto mining.
The State Senate approves a controversial proof-of-work mining ban bill that would prohibit any new Bitcoin mining operations in the state.
(Reporting via @_prashantjha) https://t.co/aoaHmvsu3d
— Cointelegraph (@Cointelegraph) June 3, 2022
Domino effect
However, some industry insiders believe that the bill will have a domino effect throughout the United States. Which presently leads the global cryptocurrency mining business with 38 percent of the world’s miners.
Boring said in the CNBC interview that this would have the overall effect of weakening New York’s economy by driving firms to relocate
Bitcoin is created via proof-of-work mining, which necessitates high-tech equipment and a lot of power. Ethereum is transitioning to a less energy-intensive procedure, although it will continue to utilize a current technique for at least a few months longer.