The mayor of New York City, Eric Adams, has urged the state’s governor, Kathy Hochul, to veto a measure that would impose a two-year ban on Proof-of-Work (PoW) crypto miners that do not utilise 100 percent renewable energy.
Crain’s New York stated on June 13 that the mayor intends to lobby for the bill’s rejection on the grounds that its passage will have a negative effect on New York’s economy.
According to Adams, implementing the bill would certainly nullify the state’s advantages in developing the cryptocurrency industry and have a detrimental effect on the state’s economy.
“I’m going to encourage the governor to consider vetoing the measure that would hinder bitcoin in upstate New York. New York is the frontrunner in terms of the billions of dollars spent on cryptocurrencies. We cannot continue to erect obstacles,” stated Adams.
Bitcoin mining restrictions
The mayor said that the measure creates obstacles for miners, who have become significant economic contributors to the state.
The bill’s supporters are worried that Proof-of-Work mining that utilises fossil fuel-burning power plants might set the state back on its road to reducing carbon emissions by 85 percent by 2025.
In addition to the mayor, the Executive Vice President of the Blockchain Association, Jake Chervinsky, said that the measure would not reduce carbon emissions as intended by the state government. According to the source, the measure will force miners outside of New York to regions that are more favourable.
In addition, Chervinsky has urged New York Governor Kathy Hochul to reject the law, arguing that the state should conform to international standards.
Failure to keep up
According to industry analysts, the law would likely prevent New York from keeping pace with the rest of the nation’s cryptocurrency industry. This comes as states and towns like Wyoming and Miami compete to become the crypto capital of the United States.
Notably, the rule impacts new entrants into the mining industry, since existing mining companies or those in the process of renewing their licences would be permitted to continue operations.
Adams has emerged as one of the most prominent politicians who completely endorse Bitcoin, even accepting payment in the leading cryptocurrency.