Key Insights
- Governor Kathy Hochul of New York stops crypto mining for two years.
- The moratorium will halt the approval of licenses for fossil fuel power plants that engage in crypto mining.
- This move is towards preserving the environment and reducing the negative impacts on the climate.
New York has become the latest country to frown at the negative environmental impact of crypto mining. You would recall that industry players have clamored for the shift from Proof of Work— which involves excess energy consumption, to Proof of Stake.
Furthermore, the earlier these countries enact laws and regulations to halt energy-intensive activities, the better for the environment and its people.
New York Temporarily Pauses Crypto Mining
Governor Kathy Hochul of New York said the state would instate a two-year moratorium on cryptocurrency mining operations. These crypto mining companies’ activities are powered by Proof of Work mechanisms and housed by fossil fuel power plants. Significantly, the entire operation hurts the environment and climate.
Governor Kathy signed the bill into law, making New York the nation’s first to pause new permits temporarily. This move became necessary because these fossil fuel power plants house Proof of Work crypto mining.
Similarly, Governor Kathy said the moratorium is necessary to avoid increased emissions from the industry restarting old power plants. She reiterated the need to guide the state toward ambitious climate goals.
It is worthy of note that in recent times, Upstate New York has become the choice destination for crypto mining companies. This is due to the availability of former power plants and manufacturing sites with unused electrical infrastructure.
Furthermore, in his memo detailing the approval of the moratorium, she said she recognizes the importance of creating economic opportunities— in communities that were hitherto left behind. She clarified the reason for passing the “controversial bill.”
Similarly, the Governor added that the state would continue its steadfast efforts to support economic development— and job creation in Upstate New York.
Since its passage into law, the bill has generated mixed reactions.
Reactions To New York’s Crypto Mining Ban
Kathy Hochul is more keen on steering the state towards an environmentally-friendly path.
Since the bill appeared at the parliament, it generated several reactions. Significantly, the environmental groups pushed for the lawmakers and Kathy Hochul to support the bill. Meanwhile, the industry players urged the Governor not to assent.
One of the focal groups that frowned against the bill is the Business Council, an industry player. They said, “The Business Council does not believe the legislature should seek to categorically limit the growth and expansion of any business or sector in New York. ”
However, Yvonne Taylor, the vice president of Seneca Lake Guardian, an environmental group, applauded the ban. She said, “Thank you for stepping up to protect New Yorkers from corporate bullies— who want to exploit communities like mine in the Finger Lakes.”
