New York Governor Kathy Hochul has signed the most controversial law regulating Bitcoin and altcoin mining. The law introduced a two-year ban on new permits from fossil fuel-powered proof-of-work (PoW) crypto mining companies. Here are the details…
Law signed for PoW Bitcoin and altcoin projects
The crypto community has lobbied strongly against the bill banning PoW crypto mining in New York. Several crypto influencers and legislators disagreed that the move would reduce carbon emissions. New York Governor Kathy Hochul signed the most restrictive bill on regulating crypto mining in the state on November 22. The bill was approved by the New York Senate in June. In the previous draft law, the ban was expected to be 3 years. However, it was reduced to 2 years after the backlash.
However, Hochul delayed signing due to strong lobbying efforts by the crypto industry. Perianne Boring, founder of blockchain advocacy group Digital Chamber of Commerce, criticized the move, claiming that no industry in New York has yet been sidelined for energy use. He believes that their use of force may cause problems for other industries. The NYS Business Council also spoke out against the 2-year moratorium on crypto mining signed by Hochul.
The ban only affects new companies
He stated that the state should not “limit the growth and expansion of any business.” But Hochul said he signed the law to build on New York’s nation-leading Climate Leadership and Community Protection Act, the most aggressive climate and clean energy law in the country. The law also triggers an investigation by the Environmental Protection Agency on the effects of the crypto mining industry on the environment.
Meanwhile, the ban covers companies that are new to the mining business. In other words, there is no ban on companies engaged in mining operations before the law was enacted. The governor of New York, in his statements on the subject, said that New York will continue to be the center of financial innovation. Meanwhile, crypto miners using renewable energy sources are not affected by the law. As we reported on cryptocoin.com, several crypto miners have started to switch to renewable energy alternatives after many people, including Tesla CEO Elon Musk, expressed concerns about the use of energy in crypto mining.
What cryptocurrencies are affected?
New York has become one of the largest crypto mining centers after China’s ban on crypto mining last May. Miners moved to New York because of lower energy costs and colder climate conditions resulting in higher productivity. Greenidge, the largest Bitcoin mining company in New York, is mining with waste coal. The rate of damage caused by waste coal is equated with hydroelectric power plants.
So, what are the proof-of-work (PoW) coins in the bill? In the image below, you can see the biggest PoW coins:
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