A bill to pause Bitcoin mining for 2 years advances in New York – DiarioBitcoin

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A bill to pause Bitcoin mining for 2 years advances in New York - DiarioBitcoin For Hannah Perez

The NY Assembly will vote this week on the bill, which seeks a two-year moratorium on PoW crypto mining permits.

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A controversial bill seeking to limit proof-of-work (PoW) cryptocurrency mining is moving forward in New York state.

As reported CoinDesk, the proposal was approved by the Ways and Means Committee of the New York Assembly during a meeting held on Monday afternoon, who voted to send the bill to the full Assembly. A year after its introduction, New York Assembly members will now have to decide whether to move forward with the proposal.

First introduced in May 2021 by the New York Senate, the bill in question is Bill No. 6486, which aims to put a two-year moratorium on select PoW-based crypto mining operations. The underlying argument is the high energy consumption of these operations; in particular, with regard to carbon-emitting energy sources.

Environmentalists have been pushing for its passage, aiming to curb crypto mining operations by citing the burning of fossil fuels. as reported DailyBitcoinat the end of March a group of supporters of the project urged Governor Kathy Hochul to impose the moratorium, arguing that her authority allowed her to do so without the prior need for approval by the Assembly and the Senate.

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The practical implications of its approval

In general, the project has not been well received among some members of the crypto community, who point out that its approval could negatively impact crypto mining companies and curb innovation in the state. However, as highlighted CoinDeskthe scope of the project is limited.

As such, the legislative proposal addresses crypto mining powered by non-metered and non-renewable energy sources. If passed, it would impose a two-year moratorium on the issuance of new permits for trial-of-work mining operations that propose the use of a “power generation facility using a carbon-based fuel“.

The project would also require a study by the New York State Department of Environmental Conservation (DEC) into the impact of PoW mining on the state’s plan to achieve climate goals set by the Climate Leadership and Community Protection Act, which calls for greenhouse gas emissions to be reduced by 85% by 2050.

In practice, its approval would mean a total pause for the issuance of new permits for PoW mining operations until the New York DEC can effectively assess its impact on the environment. would also imply a restriction for the renewal of permits in cases where there is an increase in the amount of energy consumed; and I would freeze effectively operations at current levels for two years, except those using renewable energy sources.

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However, as highlighted CoinDesk, your approval is not would affect existing proof-of-work mining operations or those planning to use renewable energy sources of the state, which are abundant and much cheaper. An earlier version of the bill called for a three-year moratorium on all crypto mining in the state.

Industry enthusiasts criticize the move

Despite its limited scope, the project has generated great controversy and generated much criticism within the crypto sector.

New York’s proposed moratorium on proof-of-work mining (S6486D/A7389C) has an unintended consequence: it puts innovation on the backburner“, assured the Council for Cryptocurrency Innovation. The group also warned that the measure could also have “Significant implications for the security of major cryptocurrency protocols“.

A two-year mining ban sends a very bad message to the Blockchain industry, to crypto companies, to Web 3 companies, that New York is telling them: ‘You’re not welcome here’added John Olsen of Blockchain Association.

In accordance with CoinDeskwho contacted sources familiar with the matter, the vote in plenary session of the Assembly could take place on Thursday. If passed there, the bill will go to the state Senate.

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Article by Hannah Estefanía Pérez / DailyBitcoin

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WARNING: This is an informative article. DiarioBitcoin is a means of communication, it does not promote, endorse or recommend any investment in particular. It is worth noting that investments in crypto assets are not regulated in some countries. May not be suitable for retail investors as the full amount invested could be lost. Check the laws of your country before investing.

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