New York State Ban on Crypto Mining
Earlier this month, New York state’s Governor Kathy Hochul signed a bill that would ban energy-intensive cryptocurrency mining operations in the state. The legislation is the first statewide moratorium on mining in the U.S. The bill, authored by Assembly Member Anna Kelles, aims to mitigate the impact of climate change.
The bill would impose a two-year moratorium on the renewal of air permits for energy-intensive crypto-mining operations that use fossil fuels. It would also require the state to prepare an environmental impact statement on the impact of mining on greenhouse gas emissions.
The state Department of Environmental Conservation is expected to begin work on a generic environmental impact statement that will determine whether crypto mining from fossil fuels will negatively impact the climate.
The bill’s proponents say the moratorium will help the state meet its climate goals and argue that it will not harm existing operations. They claim that crypto mining operations add to the state’s carbon footprint, hurting its goal to cut carbon emissions. However, groups who profit from the energy-intensive practice argue that it will hinder crypto-mining operations from growing by making it less affordable to produce.
The state’s Department of Environmental Conservation is drafting an environmental impact statement that will determine the impact of crypto-mining operations on greenhouse gas emissions. The study will help the state’s policymakers decide how harmful and how much of an impact it truly has.
The Chamber of Digital Commerce is opposed to the moratorium. It says that the ban is a dangerous precedent. The group argues that the moratorium would force crypto miners to relocate, which could negatively affect local business interests and may have a chilling effect on the industry nationwide.
