The New York Senate passed a bill last week imposing a two-year prohibition on crypto and Bitcoin mining activities that use carbon-based energy sources. This measure was passed by the State Assembly in April and is now awaiting approval from the governor’s office to go into effect. Reuters reported on June 7, that state governor Kathy Hochul is still not sure whether or not to sign the bill.
Governor Kathy Hochul stated:
“There’s a balancing act going on here, and it’s a big one. We must strike a balance between environmental protection and job opportunities in locations where there is little activity, as well as ensuring that the energy consumed by these companies is adequately managed.”
New York has set a goal of reducing greenhouse gas emissions by 85 percent by 2050.Given that several Bitcoin mining operations rely on carbon-based energy, it’s a top target for government officials, especially because mining consumes a lot of energy.
If passed into law, the bill imposes a two-year freeze on Bitcoin mining firms’ growth or renewal of their permits. New entrants would also be barred from participating. This exemption does not apply to mining operations that use 100% renewable energy, but it will make New York the first major US state to outlaw cryptocurrency mining.
Many more US states are expected to follow suit if the measure becomes law, potentially affecting the country’s dominance in Bitcoin’s worldwide hash rate.
Read more: White House aims to release report on crypto mining after President’s crypto executive order
