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Bitcoin mining

New York has just passed a bill restricting Bitcoin mining

03 Jun 2022 : 13:42
2 min read
  • New York lawmakers recently passed a bill prohibiting Bitcoin mining companies from using carbon-based energy sources
  • Lawmakers who support the bill say they want to reduce the state's carbon footprint by cracking down on miners that use fossil fuels
  • mining businesses in New York have threatened to leave the state and move to more mining-friendly states like Texas/li>

New York lawmakers recently passed a bill prohibiting Bitcoin mining companies from using carbon-based energy sources.

New York cracks down on Bitcoin mining

The measure, enacted by the state Assembly last month, would impose a two-year moratorium on any new PoW mining projects that use carbon-based fuel. Existing mining companies or those in the process of renewing their permits would be permitted to continue operations. The bill now goes to Governor Kathy Hochul’s desk, where she will either sign it into law or reject it.

Lawmakers who support the bill say they want to reduce the state’s carbon footprint by cracking down on miners that use energy generated by power stations that use fossil fuels. The bill would bar a proof-of-work mining business from expanding or renewing licenses unless it used 100% renewable energy. The bill will also bar new entrants from entering the market.

Will miners move to Texas?

In response to the bill, mining businesses in New York have threatened to leave the state as more mining-friendly states like Texas would welcome them. Because of its cheap hydroelectric energy sources, New York has long been viewed as a desirable location for crypto mining firms to establish themselves. Still, mining firms have lately repurposed obsolete coal power-producing facilities.

Texas has crypto-friendly laws, a deregulated power infrastructure with real-time spot pricing, and access to large surplus renewable energy and stranded or flared natural gas would be reasons to relocate. Some believe that leaving New York will have an economic impact since many jobs and economic activity will leave the city.


About Author

Stan Colenbrander

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Stan is the head of news and podcast host at Cryptonary. He was formerly a member of the Cryptonary Pro community. In early 2021, he decided to drop out of journalism school at university to pursue journalism in real life and make an impact in the crypto space. . His areas of interest include the NFT industry, decentralised finance, and crypto start-ups.

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