Following an early morning vote in Albany city in New York on June 3rd, Friday, the New York Senate passed a contentious PoW (proof-of-work) mining banning bill that might restrict any new Bitcoin mining facilities in the state that use carbon-based power stations. The bill now goes to Governor Kathy Hochul’s office, where she will either sign it into law or reject it. Once passed by Governor Kathy Hochul, the bill would make New York the very first state in the United States to impose a ban on crypto mining.
PoW bill initially passed last month
The PoW mining restriction measure was initially passed by the state legislature last month in April. For the next two years, it intends to prevent any new mining activities in the state. The law is now on its way to the governor’s office, and if adopted, it would become New York the first state in the United States to impose a ban on cryptocurrency mining.
PoW mining agreement is broadly applied by Bitcoin miners and is regarded as one of the most secure and decentralised methods of mining. However, the procedure is controversial since it demands an enormous amount of energy. Many senators switched from uncertain to in favour of the bill during the voting, stating that they are worried about carbon emissions.
New PoW mining must use 100% renewable energy
The law will not only ban new mining operations but will also prohibit licence renewals to companies currently in operation in the state. Any new PoW mining project in the state would be approved only if it uses entirely renewable energy.
Bitcoin mining consensus process has become one of the most fiercely disputed subjects among policymakers, assisted by environmentalist and billionaire groups promoting proof-of-stake mining agreement. Proof-of-stake uses significantly less energy. Greenpeace and Ripple co-founder Chris Larsen have both urged a revision to the Bitcoin protocol.
Policymakers generally focus exclusively on Bitcoin miners’ high energy consumption, overlooking the fact that a large portion of this energy originates from renewable sources. In New York, renewable energy accounts for 50% of total energy production.
Bitcoin mining council research
Last year’s criticism against PoW mining gathered traction when the bull run was at its peak. However, towards the end of that year, MicroStrategy-led Bitcoin mining council research revealed that the BTC network consumes more than 60% of its power from clean sources.
Ban of PoW mining bill by New York will set a trend for other states
Experts believe that New York’s move to ban PoW mining will set a precedent that other states will follow. The United States presently leads the world in Bitcoin mining hash rate, which accounts for 38% of the network’s mining power.
The European Parliament considered a similar PoW mining moratorium, but it was modified to remove the restriction due to increased public criticism.
 mining banning bill that might restrict any new Bitcoin mining facilities in the state that use carbon-based power stations.){kind=link}