New York lawmakers passed the highly disputed Proof-of-Work (Pow) mining ban, imposing a 2-year ban on any new Bitcoin mining operations that rely on carbon-based power plants on June 3. Many bitcoin miners believed that if the bill became a law, it would domino effect on the state. As it would result in a mining company exodus from the state and accomplish little in terms of the moratorium’s stated purposes in the long term. Crypto experts state that the bitcoin mining ban will result in the loss of jobs and tax revenue in the state. On June 9, GEM Mining, an institutional-grade bitcoin mining company, tweeted:
“The regulatory environment in New York will not only halt their target…but will also likely discourage new, renewable-based miners from doing business with the state…”
The mining moratorium recently passed in NY. We shared our thoughts with @CNBChttps://t.co/2Trotc5bT3
— GEM Mining (@GEM_Mining) June 8, 2022
Experts remarked that the consequences of the New York bitcoin mining moratorium are exaggerated. Veteran bitcoin miners, Darin Feinstein, co-founder of Core Scientific, also remarked that the miners are well aware that New York is generally hostile to the crypto mining industry. He noted:
“There’s no reason to go into a region that doesn’t want you as Bitcoin miners are really a data center business, and the data center needs to be located in jurisdictions that want to have data centers within their borders…If you’re going to ignore that, then you have to deal with the consequences of conducting business in a region that doesn’t want your business.”
John Warren, CEO of GEM Mining, also stated in an interview:
“The regulatory environment in New York will not only halt their target – carbon-based fuel proof of work mining – but will also likely discourage new, renewable-based miners from doing business with the state due to the possibility of more regulatory creep.”
According to the sources, if the bill passes, it will have severe consequences for the United States, which is presently at the forefront of the bitcoin mining industry, accounting for 38% of global mining.
On CNBC, crypto experts noted that each bitcoin mining plant has a significant economic impact, employing a large number of local vendors such as engineers, electricians, developers, and construction workers, as well as limiting investment in more sustainable energy sources.
Perianne Boring, founder and president of the Chamber of Digital Commerce, stated:
“There are many labor unions who are against this bill because it could have dire economic consequences as Bitcoin mining operations provide high-paying and high-grade, great jobs for local communities. One of our members’ average pay, is $80,000 a year.”
The law is currently on its way to Governor Kathy Hochul’s desk, but she remains undecided. According to a Reuters article on June 7, she will either sign or reject the document. If Governor Kathy Hochul signs the bill, New York will become the first state in the US to outlaw crypto mining.
Read more:
- New York Senate passes PoW mining banning bill to restrict Bitcoin mining facilities
- New York governor still not sure on signing Bitcoin mining moratorium: Report
