The governor has yet to review whether the bill will take effect
Existing mining companies are allowed to continue their activities.
The New York legislature has passed a law that will trigger a two-year moratorium on new permits for certain power plants involved in bitcoin mining.
The measure, approved by 36-27 votes in the state Senate on Friday morning, will now be left to Governor Katie Hochul. Hochul has ten days to sign or veto the law. If the rule becomes law, it will be one of the essential restrictions on energy-intensive processes in the United States. This is also in stark contrast to policies in states such as Texas and Georgia, which use tax breaks and less restrictive regulations for law firms to relocate operations. New York has long been considered an attractive place to start a cryptocurrency business due to its cheap source of hydroelectric power. The company has also relocated old coal and gas power plants in recent years.
Crypto industry groups and environmentalists are closely watching the decision as lawmakers assess the pros and cons of extracting digital assets using energy-intensive methods to authenticate cryptocurrencies such as Bitcoin. Democratic Senator Elizabeth Warren of Massachusetts has reviewed the New York proposal, raising concerns about bitcoin miners' energy use and environmental impact.
Senators Kirsten Gillibrand, a Democrat from New York, and Republican Cynthia Loomis from Wyoming, a strong advocate for the crypto industry, are working on a comprehensive bill to regulate variable asset classes, including an analysis of the environmental impact of cryptocurrency energy consumption.
The New York bill calls for a two-year suspension of new permits for carbon-based miners. Also, it requires environmental impact studies to meet the climate goals set out in the 2019 law, which allows companies or those currently renewing licenses to resume operations.
Local lawmakers, environmental groups, and climate advocates are vocal opponents of bitcoin mining companies in the state. As a result, new York has delayed its decision on whether to resume operations of public miner Greenidge Generation Holdings Inc.
