New York State is once again on the verge of prohibiting crypto mining on proof-of-work networks such as Bitcoin and Ethereum. Members of the New York State Assembly are due to vote on a measure outlawing all crypto-mining operations in the state on Monday, April 25th.
The bill, filed as A7389C, proposes to change the State of New York’s environmental conservation statute ‘in order to impose a ban on cryptocurrency mining activities that rely on proof-of-work authentication to authenticate blockchain transactions and to demand a complete generic environmental impact statement evaluation.’
Justifications for the law include the following on the supposed terrible environmental effect of cryptocurrency mining.
Block chain technology is a cutting-edge innovation that enables the recording and efficient transport of data. Each environmental problem is also a social justice issue. We cannot reverse our legal promise to avert these devastating consequences for New York people.
New York State’s Prohibition on Crypto Mining Could Serve as a Model for Other States
If enacted, New York will become the first state in the United States to prohibit cryptocurrency mining.
At the time of writing, the Bitcoin Advocacy Project is running an online public campaign encouraging members of the crypto community in New York to contact their local congressman and explain why they oppose the bill. The advocacy organisation fears that prohibiting cryptocurrency mining in New York might pave the way for other US states to follow suit. They continue by summarising the campaign thus:
If this bill becomes law, New York would forgo the unique prospects for economic development and the expansion of renewable energy that Bitcoin mining brings. This might create a precedent for other states to follow suit. Not only would this approach exclude New York from the economic advantages of mining, but it would also have little effect on pollution reductions, since miners would just relocate.
The New York State Assembly’s actions contrast those of New York City Mayor Eric Adams, who made headlines last year for his crypto-friendly stance, notably during his campaign late last year. Mayor Adams stated in a November 2021 Tweet that he would earn his first three salaries in Bitcoin upon becoming mayora.
Also Read: Will Austria Soon Have 12 Bitcoin ATMs?
