New York: Moratorium on cryptocurrency mining continues to divide

PoW cryptocurrency mining has been a hot topic all around the world since there is convincing research about its harmful effect on the environment. Despite this, the New York State Senate has approved a two-year ban on cryptocurrency mining via carbon-generated energy. More details are in the article.

What does it mean?

Crypto mining companies and those seeking authorization to mine will be able to continue operations. Authorities intend to evaluate the possible environmental effect of Proof-of-Work mining over two years. However, Democratic Senator Kevin Parker pointed out that the limits would not affect only one institution in the state at the moment. He also claimed that the authorities are considering a proposal, but a decision on it may be postponed until the research is done.

Pre-conditions

Large mining farms relocated to other countries when Chinese authorities put severe limitations on cryptocurrency mining last year. As a result, America has become one of the most appealing destinations. Hydroelectric power facilities produce a large percentage of the electricity in New York State. Furthermore, the state has several abandoned industries that run on fossil fuels and are suited for storing mining equipment. All of this has swiftly elevated New York to the forefront of bitcoin mining.

Residents and environmentalists have expressed concern over the restarting of coal-fired industrial plants. They are afraid that the plants, working due to cryptocurrency mining would harm the environment and undermine the state’s efforts to tackle climate change.

Brief chronology

New York governor candidate Juman Williams petitioned the state government in February 2022 to outlaw the PoW cryptocurrencies mining. In December, a group of U.S. legislators asked the Environmental Protection Agency to conduct an audit of the mining sector to assess environmental hazards and compliance with applicable regulations.

They specifically cited the business Greenidge Generation, which was accused of environmental infractions by Lipny 2021 residents. They did not, however, indicate that the state Supreme Court found no detrimental impact from the development of mining operations “on the air or water of Seneca Lake.”

Later, around 50 data center industry leaders petitioned legislators for their censure. In a brochure to the Agency, they termed mining absurd and said that data centers are electrical customers who do not emit carbon emissions.

Important to note that the United States has maintained its lead in the share of Bitcoin Hash Ratio at 37.8 percent, overtaking China.

Meanwhile, the White House intends to introduce laws to govern Bitcoin mining and its impact on energy and the environment. A law draft is likely to be issued as early as August 2022. According to Bloomberg Law, the administration is bracing for criticism from the crypto community and considers the proposed legislation essential.

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