US Imposes Ban On #Bitcoin Mining In NYC
Updated: Jun 20
After an early morning vote in Albany on Friday, the lawmakers of NYC have passed a bill to ban all bitcoin operations from "carbon-based power sources". Not just bitcoin this bill will ban operations for all "proof of work blockchains".
Lawmakers say that the decision has been taken to curb the state’s carbon footprint by cracking on mines that use electricity from thermal power plants. The bill will ensure that unless a proof-of-work mining company uses 100% renewable energy, it would not be permitted to expand/renew permits.
Many seem to be in support of this decision as this will help prevent climate change. However, some fear that this may cause significant loss to the state.
“This is a significant setback for the state and will stifle its future as a leader in technology and global financial services. More importantly, this decision will eliminate critical union jobs and further disenfranchise financial access to the many underbanked populations living in the Empire State,” - Says Boring
Many fear that the regulatory compliances will discourage even new renewable-based miners from doing business with the state due to the possibility of more regulatory creep.
The timing for this bill also seems a bit off as the crypto sector is currently witnessing a major setback due to the Terra Luna Crash. That's it for the day
The Bill is put together under the state's Climate Leadership and Community Protection Act, which mandates that New York's greenhouse gas emissions be cut by 85% by 2050, with net emissions being slashed to zero.
It would effectively ban Proof-of-work mining – the energy-intensive process used to secure the Bitcoin (BTC) network – for a period of two years.
The legislation would still require passage by the entire New York State Assembly and then signed into law by the governor.