Democratic Governor of New York Kathy Hochul signed a two-year prohibition on proof-of-work (PoW) crypto mining into law.
Hochul confirmed her approval in a message, declaring that she 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.”
A PoW mining bill was approved by the New York State Senate in June of 2022 in an effort to alleviate some of the environmental issues surrounding cryptocurrencies. The bill was approved by the State Assembly in May.
The approved bill is far more focused than its failed predecessor which sought to prohibit all cryptocurrency mining in New York for three years. The bill is only applicable to PoW mining activities in former power plants where fossil fuels are used as the main power source, or when the applicants intend to expand their facilities size, they’re permitted for a renewal.
Additionally, existing mining operations that use the state’s inexpensive hydroelectricity as the power source are excluded.
When the bill was under review, some have expressed their opposition to the bill on social media and argued that it will potentially open the way for future regulations that might damage the state’s crypto mining industry and even the industry as a whole.
A mining ban, according to John Olsen, the New York state’s top crypto lobbying group Blockchain Association, could pose an existential threat to the state’s crypto industry, which is already pressured by a number of legal barriers, including BitLicense.
