The New York State has decided to vote against encouraging cryptocurrency mining in the region. To this end, the Assembly Environmental Conservation Committee conducted a vote of the members on the matter. The vote was to suggest a 2 year Bitcoin mining operations ban in the state as reported by Bloomberg.
The main motivation behind this legislation is to reduce the carbon footprint of NY State. According to reports, the state administration plans to reduce carbon emissions by as much as 85% before the year 2050. The legislature also suggests that with the help of this temporary Bitcoin mining moratorium the experts will have a chance to study the environmental impact of the PoW consensus model in detail.
Climate Leadership and Community Protection Act of 2019
Bitcoin miners historically gather in the places where the trade conditions for their mining farms are ideal. Under the context, New York state is also nothing short of a business and strategic haven for Bitcoin miners due to its cheap energy prices and colder environment. To prevent more miners from entering the region, the Committee has invoked the Climate Leadership and Community Protection Act of 2019.
The bill states that the state administration should research to completely understand the environmental implications attached to the mining industry. The Committee has also expressed concern over the detrimental impact of carbon emissions issued by Bitcoin mining on air, water, and quality of public health.
The main attraction for Bitcoin miners in New York is the Seneca Lake power plant. Dale Irwin, the chief executive at Greenidge has rejected the claims that the plant has been causing severe damage to the flora and fauna of the local area. Meanwhile, cryptocurrency proponents in the region like Eric Adams have also endorsed Bitcoin trading rather than mining.
For the Bitcoin mining ban bill to gain more weight in the region, it is necessary to get approval from the upper crest of the New York administration. Citing the concerns around the Greenidge power plant and increasing pressure from environmental advocates, Mayor Kathy Hochul has also started to lean towards the Bitcoin mining ban. Thus far, the anti-mining bill is in want for the signature of Mayor Hochul, Assembly, and State Senate.