Many responded to the passing of the law that will impose a two-year moratorium on new Bitcoin mining operations powered by non-renewable energy.
The mining community of Bitcoin in New York is responding to the recent passage of a bill that seeks to pause proof-of-work (PoW) cryptocurrency mining operations for a period of two years in that state.
as reported DailyBitcointhis morning the New York Senate, in the United States, approved the bill “S6486D” that would impose a two-year moratorium on new PoW mining projects, such as Bitcoin, powered by carbon-based energy. The legislative proposal, which was approved by the state Assembly in April, comes in an effort to address environmental concerns of cryptocurrency mining.
Although the project has generated controversy among digital asset enthusiasts, it should be noted that the scope is relatively limited. As such, its official approval will not affect companies that currently operate farms of Bitcoin in the capital nor will it prevent them from renewing their permits; although it would prohibit them from increasing the amount of energy they consume.
Instead, the purpose of the law will be to pause for two years the issuance of new licenses to mine cryptocurrencies with energy based on fossil fuels; but it would not apply to operations powered by renewable energy. During this time, the state will conduct a study on the potential environmental impact of PoW mining.
The project went ahead this Friday after obtaining the majority of votes in favor (36-27), but the signature of Governor Kathy Hochul is still missing so that it can officially become law.
Bitcoiners Respond to Approval
While the practical scope of the proposal seems limited, some enthusiasts and ecosystem watchers have pointed out that its passage could stifle innovation and drive crypto firms away from New York state; especially as it will prevent new PoW mining facilities operating on non-renewable energy from being installed in that jurisdiction. At least for a time.
how to pick up The BlockThis was the opinion, for example, of some of the legislators who opposed the bill. This group, which includes Democratic Senator Todd Kaminsky, has warned that the passage could have a ripple effect on New York’s position in the crypto industry as a whole and remove jobs from the state.
It is with this in mind that several have approached the governor to ask her to veto the moratorium. Barry Silbert, CEO of Digital Currency Group, said in a tweet on Friday that the bill was “a job killer” and would send “a terrible message to crypto entrepreneurs.” The Blockchain Association She is also one of those who has turned to Twitter to ask both the governor and the community to reject the project.
Our focus now turns to [Kathy Hochul], who should veto this misguided bill. We encourage all pro-tech New Yorkers to make their voices heard and ask the Governor to veto it.
the mining company foundryproperty of Digital Currency Groupalso resorted to Twitter to comment on the possible disadvantages that the approval of the regulation could bring.
“We sincerely hope that Governor Hochul does not sign this bill into law, as it represents the clear target of one industry among hundreds of others throughout New York State.. As a Rochester-based company committed to growing the city and state economy through job creation and economic stimulus, we believe this legislation limits jobs and innovation in New York for the foreseeable future.“.
Most businesses will not be affected
Cryptocurrency industry enthusiasts had already railed against the project when it was first introduced last year. However, the language of the regulations has become more limited since its first original, in part, due to the impact generated by the “lobbying efforts” from cryptocurrency advocates, according to project sponsor Anna Kelles.
At the time, many industry advocates called the proposal a “prohibition” mining total. Later, when the moratorium was clarified, they highlighted their concern that the project could open the doors for more strict and restrictive policies for the digital currency sector.
how to pick up The Blockorne week after the New York Assembly voted in favor of the moratorium, a group of national crypto representatives rallied outside the state capitol building in Albany to oppose the project.
However, not all members of the industry see its approval as negative, since they agree that the project will not affect the operations of mining companies in Bitcoin existing. Paul Prager, founder and CEO of the mining company Bitcoin TeraWulfwhich operates a plant “90% carbon-free energy” in western New York said the company would be immune from the bill.
Even the company Greenidge Generationwhich owns a 106-megawatt facility in Dresden and whose operations have been at the center of discussions by environmentalists and mining opponents of Bitcoin, clarified that even if the bill is approved it will not close its operations. “Greenidge facilities in New York would not be affected by this bill”.
Article by Hannah Estefanía Pérez / DailyBitcoin
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