Lawmakers in New York passed a moratorium on certain cryptocurrency mining, in an effort to reduce the state’s carbon footprint.
Late last week, a group of senators from New York passed a bill that, if approved by the state’s Governor, would put a two-year ban on crypto mining that uses proof-of-work to authenticate blockchain transactions. Such mining operations, which are used to produce bitcoin and ethereum, traditionally require advanced technology and a significant amount of energy.
The lawmakers behind the bill are looking to curb New York’s carbon emissions by targeting companies that draw substantial electricity from power plants that use fossil fuels. As per climate goals outlined in the Climate Leadership and Community Protection Act, the state of New York needs to curb greenhouse gas emissions by at least 85% by 2050. If passed, crypto companies would only be allowed to conduct proof-of-work mining if their electricity consumption is from 100% renewable energy sources. Otherwise, the miners wouldn’t be allowed to renew their permits, and no new entrants would be allowed to enter the crypto mining industry.
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However, according to Chamber of Digital Commerce president Perianne Boring, such a move would repress New York’s economy by prompting businesses to relocate their operations to less restrictive jurisdictions. “This is a significant setback for the state and will stifle its future as a leader in technology and global financial services. More importantly, this decision will eliminate critical union jobs and further disenfranchise financial access to the many underbanked populations living in the Empire State,” she said, as cited by CNBC.
Information for this briefing was found via The New York State Senate and CNBC. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
