After a morning vote in Albany on Friday, New York lawmakers passed a bill to ban some mining operations on bitcoins running on carbon-based energy sources. It will now be referred to Governor Katie Hochul, who can sign it or veto it.
If Hochul signs the bill, it will make New York the first state in the United States to ban blockchain infrastructure, said Perianne Boring, founder and president of the Digital Chamber of Commerce. Industry insiders also say it could have a domino effect in the United States, which currently holds a leading position in the global bitcoin mining industry, which accounts for 38% of the world’s miners.
The New York bill, previously passed by state assemblies in late April before being sent to the State Senate, calls for a two-year moratorium on certain cryptocurrency mining operations that use authentication authentication methods to verify blockchain transactions. Proof-of-work mining, which requires complex equipment and large amounts of electricity, is used to create bitcoins. Ethereum is moving to a less energy-intensive process, but will use this method for at least a few more months.
12575.webp (420 KB)
The impetus for the eleven o’clock vote came after the leadership of the state capital managed to change some senators who had not yet decided.
Lawmakers who support the law say they seek to limit the state’s carbon footprint by suppressing mining farms that use electricity from power plants that burn the fuel they produce. When the law is signed and comes into force – within two years, if the mining company confirms the work does not use 100% renewable energy, it will not be allowed to expand or update permits, and new players will not be allowed to connect to the Internet.
The net effect, Boring said, would be a weakening of New York’s economy, forcing mining companies to operate elsewhere.
“This is a significant failure for the state and will stifle its future as a leader in technology and global financial services. More importantly, the decision will eliminate key union jobs and further deprive many people living in the Empire State of their access to financial rights without banks, ”Boeing told CNBC.
Amando Fabiano of Galaxy Digital echoes this, saying that “New York is setting a bad precedent that other states can follow.”