New York Governor Kathy Hochul Approves Proposed Crypto Mining Moratorium Following Proof-of-Work (PoW) Consensus Process on Nov. 22 signed implementing a two-year ban on Bitcoin (BTC) mining in the influential state.
The temporary ban on PoW prevents the establishment of new mining operations for this period and at the same time prohibits the extension of existing permits. New mining companies can only set up on the condition that their electricity comes from 100% renewable energy.
The mining ban passed in the first instance in the state legislature in April before passing in second instance in June. Now Governor Hochul has finally turned the draft into law, after especially climate protectors campaigned heavily for it. In this context, the politician writes:
“I will continue to ensure that New York remains the center of financial innovation while also taking important steps to protect the environment.”
PoW mining mainly takes place in the market leading cryptocurrency Bitcoin (bitcoins) and a few selected Altcoin applications. While the method is celebrated among purists as the best consensus method due to its decentralization, critics object to the high energy consumption.
The US is still the leader in bitcoin hashrate with 37.8% market share. New York’s decision could now be all the more revolutionary, because the state has a real pioneering role that other states could also follow in the coming months.
Die Blockchain-Lobbygruppe Digital Chamber of Commerce resists meanwhile he objected to the narrative associated with the ban:
“The state’s argument that the mining industry consumes excessive amounts of electricity is simply wrong. […] Carbon emissions must be reduced by 85% in all sectors in New York and be climate neutral by 2050. PoW mining can help meet these goals by providing monetary incentives.”
European politicians initially wanted to introduce such a mining ban as part of the broad regulation of cryptocurrencies Markets in Crypto Assets (MiCA), but support for such plans was too weak. As a result, the MiCA was recently passed without a mining ban.
