New York Senate Passes Bill Which Bans Bitcoin Mining

2022/06/07By:

New York lawmakers have passed a moratorium to try to ban Bitcoin mining for two years to alleviate environmental problems. New York State has banned some Bitcoin (BTC) mining businesses that use carbon based power sources. Earlier on Friday, the New York State Senate passed a bill banning proof of work (PoW) mining using non renewable power. This measure of the state legislature aims to correct some environmental problems caused by the participation of digital currency.

Before the State Senate suspended Bitcoin mining, the New York state legislature had passed a bill banning new mining businesses based on carbon energy for two years. This happened in late April and early last month. However, the ban exempts existing mining companies or companies already in the process of license renewal.

The bill was sponsored by Democrats. Senator Kevin Parker further explained that at present, only one plant in operation belongs to the exemption category. But he said there was still an application that might be put on hold until a study was completed. This study refers to an extensive New York study of the environmental impact of pow mining.

How the Bitcoin Mining Moratorium in New York Came Into Being

With the help of 36-27 votes in the Senate, the prescription bill seems desperate in the process of becoming a reality. Many people did not expect that the bill could pass the Committee at its formative stage, because a similar version proposed in 2021 also failed to pass.

In addition, the bill has not been supported by the Senate Environmental Protection Committee. At the last meeting of the session, the chairman of the committee, Senator Todd Kaminsky, shared his concerns. According to Kaminsky, if the public thinks that New York state is hostile to cryptocurrency, the bill may have negative economic consequences. In his own words.

“I want to do everything we can to make cryptocurrency mining more environmentally friendly. Now there are great innovators doing this. But I think this [cryptocurrency mining act] will be considered very hostile… I think if people think New York is hostile to cryptocurrency, it will lead to really harmful economic consequences.”

However, the Bitcoin mining bill was finally passed a few hours before the end of the legislative session. In any case, New York governor Kathy hochul must sign the bill to become law. Interestingly, many people expect hochul to sign the bill as soon as possible. If this happens, New York will become the first state in the United States to ban blockchain technology infrastructure.

According to parianne boring, chairman of the digital chamber of Commerce, New York will suffer some consequences of the ban. Boring believes that the state may lose several relevant jobs to other states. Therefore, it may weaken the economy of the Empire State.

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