New York State Legislature Passes Ban on New Bitcoin Mining Farms Not Using Green Energy

On the evening of April 26, the New York State Legislature passed a bill that would impose a two-year ban on all new proof-of-work (PoW) cryptocurrency mining facilities in the state that use carbon-based fuels to power their operations.

The bill sponsored by Anna Kelles would not only grant a two-year moratorium on any new bitcoin mining farms, the ban would also prevent the issuance of licenses to existing PoW cryptocurrency mining farms that use carbon energy if they attempt to increase electricity consumption.

The bill received the support needed to pass, with 95 in favor and 52 against, and will now be voted on in the Senate by Senator Kevin Parker. If successful, it will be delivered to Gov. Kathy Hochul, who can veto the bill or sign it into law.

The bill would require the Department of Environmental Conservation (DEC) to prepare a “Common Environmental Impact Statement” to number, locate and assess the energy consumption and greenhouse gas emissions of PoW miners and their impact on public health.

The Blockchain Association, a cryptocurrency industry advocacy group, had previously called on “pro-tech, pro-innovation, pro-crypto” New York residents to oppose the bill, which they claimed resulted in thousands of messages being sent to lawmakers.

The Blockchain Association said that around three hours of debate surrounding the bill indicated that they believed “the opposition to the mining ban was greater than proponents believed.” In a tweet today, the group said it would focus its efforts on defeating what it called the Anti-Technology Act in the New York Senate.

Proposed bans on proof-of-work cryptocurrencies based on environmental reasons are becoming more common. In late March, a similar proposal dubbed the Cryptoasset Markets Bill was narrowly defeated in the European Parliament, with MEPs even considering banning bitcoin transactions to enforce a proposed ban on mining.