NY signes a PoW mining moratorium

NY PoW mining ban comes into force

23.11.2022 11:56 (Updated 23.11.2022 11:11)
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by Maksym Prykhodko
2 min read

New York governor Kathy Hochul signed a moratorium on proof-of-work mining for two years, following the bill accepted by the state assembly and State Senate earlier this year.

N.Y. State Assemblymember Anna R. Kelles tweeted regarding the new law:

We did it! Thank you to Kathy Hochul for signing the crypto moratorium into law! This is a huge win for our planet and a sign that New York is not afraid to lead the nation in our climate policy. Thank you to everyone who fought with me.

New York became the first state in America to prohibit PoW mining due to the industry’s extensive energy use. Under the new law, new mining companies will not be able to start a business in the state, and already functioning businesses will not be able to renew their licenses.

Predominantly this law will affect Bitcoin mining, with the U.S. sitting on top of the countries in terms of mining harshrate, providing 37.8% of all mining operations. With a moratorium in New York, other states may join the capital’s decision. Environmental issues primarily drive the controversy around Bitcoin.

Kathy Hochul states:

“As the first governor from Upstate New York in nearly a century, I recognize the importance of creating economic opportunity in communities that have been left behind,” she said. “I will ensure that New York continues to be the center of financial innovation, while also taking important steps to prioritize the protection of our environment.”

Not all officials yet agree with this course. Blockchain advocacy group Chamber of Digital Commerce tweeted following the N.Y. state moratorium’s official announcement:

The anti-PoW mining agenda was actively lobbied by the government, calling for proof-of-stake mining due to its relatively small energy use. Available research by the Bitcoin Mining Council (BMC), highlighting that more than 60% of the electricity consumption by the BTC network comes from clean sources, was sidelined.

Related: State of Ethereum Miners After the Merge: Is It All Over for Them? 

Author

  • Maksym has denied the existence of crypto as an asset for 3 years when he was working with standard financial instruments. Became Head of Treasury. Won the best bank employee award and left the bank for cryptocurrency exchange the next day. Got a second university degree, but that didn’t stop him from studying finance yet. Combines fiat and crypto experience to be as objective as possible in general matters. His dream is to be interviewed by Bloomberg.

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