Now Loading



Moratorium for further exploration

The lower house of the NY regional legislature, the Assembly, has passed a bill that will last two years for any new mining operation using a valid proof of work (PoW), as well as renewing existing permits. .

The bill, S6486D / A7389C, is being advertised by its sponsors as a necessary compliance with the Climate Leadership and Community Safety Act 2019 and its goal of reducing greenhouse gas emissions by 40% by 2030. The bill also authorizes a “general environmental impact statement” to be made by the Department of Environmental Affairs (DEC), which should assess the energy use and emissions of greenhouse gases for PoW miners and their impact on public health.

Next up in the bill is a vote in the upper house, the State Senate, after which, if passed, it goes to Governor Kathy Hochul, who can oppose or sign it into law.

Representatives of the Blockchain Association believe that the "anti-tech" bill could be immersed in the Senate. The heated debate in the Council lasted for three hours, and the vote ended with a unanimous vote: 95 in favor, 52 in opposition.

The story of the state

The passage of this bill has triggered an alarm from the crypto community. Crypto Council for Innovation shared concerns that the move could put new ones on the back temperature. Kyle, Schneps, Foundry's public policy director, stressed that the move separates only one of the many petroleum industries from the state, and the Financial Education Fund (DeFi) has emphasized the legislature's refusal to approve industry benefits.

Proponent of the bill, environmental and housing rights activist Anna Kelles dismissed the controversy in a Twitter interview with Blockchain Association policy chief Jake Chervinsky. He pointed out that the bill is "very small in scope" and will only apply to "big crypto mines" in energy plants that use fossil-based energy sources. In addition, the suspension will only apply to mining operations in disconnected power stations for the sole purpose of preventing a major re-launch of such plants that may be driven by the benefits of crypto mining. According to his estimates, there are 49 such centers in New York State.

As John Belizaire, CEO of the developer of the data center Soluna Computing, commented to Cointelegraph that the suspension would certainly "have a cooling effect" on crypto mines in the province. He believes the state is "taking a step forward" in studying environmental issues as the growth of the industry has raised concerns about the longevity of carbon-rich fossil fuels:

"We will encourage the state to participate in open dialogue with forward-looking companies to learn how the crypto mining industry can accelerate the development of renewable energy in New York."

John Warren, CEO of GEM Mining - which claims that 32,000 miners are 97% neutral - noted in the Cointelegraph that the passage of the bill shows that the New York legislature is "dominated by strong and absurd" new and new financial and technological sectors. " Warren states:

“It is not surprising that so many citizens and businesses are fleeing New York to pursue better opportunities in business-friendly provinces. As a graduate of New York University and a New York fanatic, it is sad to see the state implementing policies such as China and Russia. ”

The future is bright

Experts often agree on the potential effects of the bill beyond the borders of New York State. Warren is convinced that this story represents a unique "radical outlier" story and will therefore have little impact on the United States' role as a global leader in cryptocurrency mining:

"We have just seen the opposite as many legislatures have openly promoted the practice of crypto in their respective provinces and even gone so far as to legislate in favor of crypto. For example, consider Georgia."

Belizaire also found it difficult to name other provinces with similar hostile policies on miners. He cited the example of North Dakota as a country that saw the potential to create crypto mining jobs and chose to partner with the industry:

“The NY ban appears to send a negative message without any discussion. Unfortunately, this reinforces the fact that the PoW law is not fair in the world. ”

Regardless of the outcome of the vote, the New York moratorium is unlikely to be a state of one state in conflict with crypto mines. Coming from an ecological history, Kelles repeatedly stressed that his concern was due to the potential impact on the New York State area, not the crypto industry as a whole. It is like a great discussion about PoW mines that take place at national and international levels.

In October 2021, more than 70 NGOs jointly signed a letter to the US Congress in which they called on the legislature in a series of initiatives to re-launch fossil fuels across the country.

As Steve Wright, former general manager of Chelan County - Washington's public utility district - explained in a congressional hearing in January 2022, miners' interest in the remaining petrol stations is driven by a simpler market, which means there is no valid reason to stop exploring such opportunities.

In that sense, the natural push from New York State law enforcement officials is an example of the great debate that will inevitably continue around crypto mines and fossil fuels. Although the New York bill does not contain a single word about the use of renewable energy in the mines, in fact, it may encourage the use of green energy - Warren, who does not see the need for it, still agrees that it is possible. is available.

How do you feel about this blog?



Leave a Reply