New York imposes a two-year moratorium on mining

On November 22, New York Governor Kathy Hochul signed a bill imposing a moratorium on cryptocurrency mining that uses electricity generated from carbon-based sources.

We did it!!! Thank you to @GovKathyHochul for signing the crypto moratorium into law! This is a huge win for our planet and a sign that New York is not afraid to lead the nation in our climate policy. Thank you to everyone who fought with me 🧵 pic.twitter.com/a2t3LPzB7P

— Anna R. Kelles (@annakelles) November 23, 2022

“I will ensure that New York remains a centre of financial innovation, and I will take important steps to prioritise protecting our environment,” Hochul said.

A screenshot of her decision was published by New York Assembly member Anna Kelles, who introduced the bill. She called this move ‘a huge victory for the planet’.

The document provides for freezing current levels of carbon emissions from mining. Enterprises operating under such a scheme will not be able to expand operations. During the two-year period, authorities plan to study the potential impact of mining on the environment under the Proof-of-Work (PoW) algorithm.

In February, New York gubernatorial candidate ban Bitcoin mining and other PoW-based cryptocurrencies on PoW.

In April, a group of US congressmen wrote to the Environmental Protection Agency asking to assess the mining industry for environmental risks and compliance with applicable laws. In the same month, the New York Assembly approved two-year restrictions on cryptocurrency mining.

Subsequently, the bill was backed by state senators, but it was criticised by the city’s sitting mayor, Eric Adams.

Industry representatives said that the moratorium would drive crypto mining firms out of business and would do little to achieve the bill’s stated aims.

Recall that experts at the Cambridge Centre for Alternative Finance found that Bitcoin mining produces 0.1% of global CO2 emissions.

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