- New York lawmakers on Friday passed a bill putting a moratorium on certain crypto mining operations.
- The state Senate in a 36-27 vote approved a two-year moratorium targeting proof-of-work, carbon-based projects.
- The Blockchain Association called the bill "misguided".
New York state lawmakers on Friday passed a bill that will halt certain cryptocurrency mining operations for two years to address environmental concerns.
Senators in a 36-27 vote passed Senate Bill S6486D, which puts a moratorium on new proof-of-work carbon-based crypto mining operations. Proof-of-work is a mechanism for the verification of new blocks on a blockchain. A new block is created by a computer solving complex mathematical problems.
The bill, which passed the New York Assembly in April, will move to Governor Kathy Hochul's desk for her signature. It was sponsored by Senator Kevin Parker and first presented to the Senate's Environmental Conservation Committee in May 2021.
Proof-of-work authentication methods will "greatly increase the amount of energy usage in the state of New York, and impact compliance with the Climate Leadership and Community Protection Act," the bill said.
Bitcoin mining has been criticized for its heavy usage of energy use and environmental impact. A University of Cambridge study showed that bitcoin mining worldwide uses more energy each year than countries.
Still, bitcoin mining has been growing in New York, particularly upstate as power for bitcoin mining has been more affordable.
The Blockchain Association in a Friday message on Twitter said Hochul "should veto this misguided bill." A broad coalition of New Yorkers have "asked a clear, simple question," it said. "[How] does this bill actually protect the environment when it only targets one specific industry and would simply send mining operations + jobs out of the state and right next door?"