The state of New York plans to ban new Bitcoin mining operations because of its high energy usage which is destructive to the environment. A bill, which establishes a two-year moratorium on new proof-of-work crypto mining operations unless it uses 100% renewables, has been passed.
Introduced by New York State Assembly member Anna Kelly, the new law specifies that no new applications for Bitcoin and other PoW crypto mining operations that use carbon-based fuel either fully or partially will be approved for a period of two years by the New York Energy Department. Moreover, no permit renewals for fully or partly carbon-based fuel mining operations will be approved. This means that existing operations will not be able to scale their operations.
Industry insiders have expressed concerns about the New York bill, saying that it will have a domino effect across the United States. Amanda Fabiano, Galaxy Digital’s Head of Mining, highlighted that the new legislation will weaken New York’s economy by forcing businesses to take jobs elsewhere. She believes New York will be left behind and lose out on opportunities to other states and more progressive nations. Fabiano said New York is setting bad precedence that would prompt other states to follow.
Perianne Boring, the founder, and president of the Digital Chamber of Commerce said the new bill, if implemented, would make New York the first state in the country to ban blockchain technology infrastructure. Lawmakers supporting the bill want to curb the state’s carbon footprint by cracking down on mines that use electricity from power plants that burn fossil fuels. Unless crypto mining operators use 100% renewable energy, they would not be allowed to expand or renew permits. New operators will not be allowed to come online.
It should be noted that this bill is under consideration and involves conducting a statewide study of the environmental impact of PoW mining operations on New York’s ability to reach climate goals.