New York State Senate backs two-year mining moratorium

New York passes a two-year moratorium on carbon-based crypto mining.

The New York State Senate approved a two-year moratorium on mining cryptocurrencies powered by electricity generated from carbon-based sources. CoinDesk reports.

The bill would freeze current levels of carbon emissions from mining. Earlier, the document was passed by the lower chamber of the state’s Legislature.

Existing operators or those in the process of obtaining permits to mine digital assets will be allowed to continue operating. During the two-year period, authorities plan to study the potential environmental impact of mining on the Proof-of-Work algorithm.

Democratic Senator Kevin Parker noted that there is currently only one facility in the state not covered by the restrictions. He also said that another application is under review, but a decision on it could be delayed until the study is completed.

The measure will take effect once signed by Governor Kathy Hochul.

In February 2022, New York gubernatorial candidate Jumaane Williams urged the state’s authorities to ban Bitcoin mining and other cryptocurrencies using the Proof-of-Work algorithm.

In April, a group of US congressmen urged the Environmental Protection Agency to assess the mining industry for environmental risks and compliance with relevant laws.

In particular, they cited Greenidge Generation, which local residents accused of environmental violations in July 2021. However, they did not specify that the state’s Supreme Court did not find a negative impact from the construction of mining facilities on the air or water of Seneca Lake.

Later, more than 50 representatives of the Bitcoin industry rebutted the politicians’ concerns. In a letter to the Agency, they described beliefs about mining as incorrect and emphasized that data centers are electricity consumers, not carbon emitters.

Earlier, the United States held the lead in the Bitcoin hashrate share at 37.8%, ahead of China.

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