New York Senate approves ban on mining


Today, there was a vote in Albany on a mining moratorium bill. The Senate approved the bill, and now it’s up to the governor. If the bill is signed into law, New York will become the first state in the country to outlaw cryptocurrency mining.

Governor Kathy Haukul may veto the initiative, but experts believe otherwise. So, it is possible that in the next few weeks, “farmers” will have to leave New York.

The U.S. accounts for 38% of the global hash rate. The approval of the moratorium bill could have a “domino effect” followed by similar initiatives in other states.

The bill proposes a complete ban on Proof-of-Work mining for two years. This technique requires energy-consuming equipment that negatively impacts the environment.

PoW is used to mine two major cryptocurrencies, BTC and ETH. Lawmakers around the world are now thinking about restricting mining by such a mechanism, in particular, the EU calls for it.

Proponents of the initiative note that rejection of the bill would jeopardize the implementation of a plan to reduce the state’s carbon footprint. Opponents insist on the economic impact. The departure from the local market of mining farms would hurt the treasury.

The same plants that are already in operation must switch completely to renewable energy sources. Otherwise, the permit will not be renewed.