Bitcoin mining ban in New York

New York State Assembly has passed a bill establishing a two-year moratorium on new proof-of-work crypto mining operations, unless 100% renewables powered.

The bill, introduced by assembly member Anna Kelles, specifies that no new applications for Bitcoin and other proof-of-work crypto mining operations that use carbon-based fuel either fully or in part will be approved for a period of two years by the New York Energy Department.

Moreover, during the same period no new permit renewals for full or partly carbon-based fuel mining operations will be approved. Thus, existing operators, who are otherwise unaffected, will be unable to scale their operations.

The bill also requires the state to prepare a generic environmental impact statement on proof-of-work crypto mining operations, addressing their number and locations and their energy use and its sources.

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“As technology and our economy evolve, our efforts to protect our environment and fight climate change must evolve with it,” said Kelles on the bill.

“This legislation will put a pause on the purchase and reactivation of outdated fossil-fuel-fired power plants for proof-of-work based cryptocurrency mining and will collect critical environmental data to evaluate the cryptomining industries’ impact on our ability to meet our state environmental goals.”

In response, the Blockchain Association, which describes itself as dedicated to improving the public policy environment for crypto networks, said that crypto mining is a mobile industry and will leave the state if the bill is passed.

“New York would be the first state in the country to ban crypto mining with a bill that only targets the blockchain industry in terms of curbing energy use. The ban will have zero impact on the climate, however, as the mining operations will simply move to neighbouring states.”

The Association adds: “New York will miss out on hundreds of 6-figure-paying jobs and emissions will likely increase as a result.”

Earlier the Association had written to the chair of the Assembly Environmental Conservation Committee expressing its support for increasing the usage of renewable energy and stating that while mining can assist in driving investment and greater progress toward this goal, it will take some time to achieve.

The Bitcoin Mining Council has reported in its Q1 2022 analysis that based on data from half the global Bitcoin network, the industry’s sustainable energy mix is currently estimated at over 58%. Moreover, it has shown an approximately 59% year on year increase since Q1 of 2021, “making it one of the most sustainable industries globally”.

The bill now goes forward in the legislative process.