New York Assembly Approves Bill Seeking 2-Year Moratorium on Crypto Mining

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New York Assembly Approves Bill Seeking 2-Year Moratorium on Crypto Mining For Hannah Perez

The legislative project, which proposes to block new permits for crypto miners who use non-renewable energy, now passes to the New York Senate.

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The New York State Assembly, in the United States, voted in favor of a project that seeks to curb proof-of-work (PoW) cryptocurrency mining, as Bitcoinwhich uses non-renewable energy sources.

As reported The Block, the bill passed with a vote count of 95 in favor and 52 against on Tuesday night. First introduced last year, it proposes a two-year moratorium on the issuance of new permits for PoW mining operations fueled by carbon-based energy.

[El Departamento de Energía de Nueva York] will not approve a new application or issue a new permit…for an electric generating facility that uses a carbon-based fuel and that provides, in whole or in part, behind-the-meter electric energy consumed or used by operations cryptocurrency miners that use proof-of-work authentication methods to validate Blockchain transactions“, indicates the draft of the bill, cited by CoinDesk.

It also stipulates that permit renewals will not be issued to crypto mining companies operating in the state that plan to increase their facilities and the amount of energy consumed. At the same time, it commissions the New York State Department of Environmental Conservation (DEC) to study the impact of PoW mining on the state’s ability to carry out its plan to reduce greenhouse gas emissions by 85%. by 2050.

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New York Senate will now review the proposal

The House Ways and Means Committee of the New York Assembly had voted to pass the bill to the full legislature during a meeting Monday afternoon. The recent approval of the Assembly marks its passage to the Senate committee.

Despite the relatively limited scope of the bill, some enthusiasts in the crypto community have voiced various criticisms of the proposal, claiming that it sends a “negative message” and that it could slow down the growth of the cryptocurrency industry, while it could lead to the exodus of miners from New York.

However, proponents of the bill have pointed out that neither existing crypto mining facilities nor those harnessing renewable resources would not be affected in the event of the bill’s official approval.

Democratic Assemblywoman Anna Kelles, the main sponsor of the legislative project, assured in this sense that the project would not hinder New York’s ability to be a leader in cryptocurrencies. “This bill is not retroactive. (…) It’s just specifically for power plants, of which we have about 30 in the north and about 19 in the south.“, said.


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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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