The New York State Environmental Protection Agency approved a bill to ban the mining of Proof-of-Work (PoW) cryptocurrencies, including bitcoin, for two years.
The bill was drafted under the auspices of the state’s Climate Leadership and Community Protection Act, which requires New York’s greenhouse gas emissions to be reduced by 85% by 2050. If the bill is passed by the New York State Assembly, the State Senate and signed by Governor Kathleen Hochul, then mining companies that mine bitcoin and other cryptocurrencies on the PoW algorithm will not be able to mine in the state.
Interestingly, the vote came about a week before the state’s deadline to decide whether to issue a permit to operate Greenidge Generation Holdings Inc., an upstate New York power plant that powers cryptocurrency mining.
Recall that in October 2021, a number of organizations sent a letter to New York State Governor Kathleen Hochul. They demanded that the city administration impose a moratorium on the mining of cryptocurrencies using the PoW algorithm until a conclusion is received on the impact of cryptocurrency mining on the environment, water and air quality in the state.
In particular, a demand was made to revoke permits for the Greenidge and Fortistar North Tonawanda power plants to mine cryptocurrencies. In February 2022, New York gubernatorial candidate Jumaane Williams called on local authorities to impose a moratorium on the mining of PoW-based cryptocurrencies due to their negative impact on the environment.
In March, a bill introduced by the Environmental Protection Agency to suspend Bitcoin mining in New York for three years received additional support from lawmakers. Two more New York state senators, Amy Paulin and Ken Zebrowski, joined the 43 sponsors of the bill.
Before that, EU legislators studied the possibility of banning cryptocurrencies on the PoW algorithm. However, in early March, they excluded this item from the text of the bill on the structure of the cryptocurrency market in the EU (MiCA).
