Could this be the end for Bitcoin (BTC) Mining in New York?
The New York State Senate has approved a bill that includes a two-year ban on certain cryptocurrency Proof-of-Work (PoW) mining operations.
If it is signed by Governor Kathy Hochul, it would prevent crypto mining companies from renewing existing mining gear and adding new rigs unless they use 100% renewable energy.
Also, a two-year moratorium would be imposed on the launch of new crypto mining farms.
Bitcoin mining in New York could be coming to an end.
The New York State Senate approved a bill that includes a two-year ban on certain cryptocurrency Proof-of-Work (PoW) mining operations, according to CNBC's MacKenzie Sigalos.
The government of New York is now implementing regulations for Bitcoin miners, and has even banned a kind of computation. They are clearly restricting the use of power to certain kinds of activities.
If Governor Kathy Hochul signs it, the bill would prevent crypto mining companies from using non-renewable energy sources. It would also impose a two-year moratorium on the launch of new crypto mining farms.
The lawmakers hope that this will reduce New York's dependence on power plants that burn fossil fuels. This would then lead to less carbon emissions overall.
CNBC points out that some big names in the crypto world, as well as experts, have already criticized the possible ban on Bitcoin mining. Perianne Boring, founder and president of the Chamber of Digital Commerce, believes it would be dangerous for the U.S. economy:
This is a big blow to the state, and will damage its chances of being a leading player in the future of technology and finance. What's more, this will get rid of lots of union jobs and make it harder for people who don't have much access to financial services.
The U.S. was the top destination of mining businesses' migration amid the Chinese crackdown on cryptocurrencies, as U.Today reported previously.
If New York goes ahead with it's proposed anti-Bitcoin measures, it would set a "bad precedent" for other states, according to Amando Fabiano of Galaxy Digital.
Insiders in the industry are warning about the "domino effect" that a U.S. ban on mining will have on unemployment rates.