- New York Governor Kathy Hochul, prohibits mining activity for 2 years
- PoW mining facility would be permitted only if it used 100% renewable energy
- The law was enacted in response to climate change
The new law, issued by New York Governor Kathy Hochul, prohibits proof-of-work (PoW) mining activity in the state for two years.
The PoW mining embargo will prohibit new mining operations and deny license renewals to those already operating in the state. Any new PoW mining facility in the state would be permitted only if it used 100% renewable energy.
Governor Kathy Hochul stated in the bill:
I am signing this legislation into law to build on New York’s nation-leading Climate Leadership and Community Protection Act, the most aggressive climate and clean energy law in the nation, while also continuing our steadfast efforts to support economic development and job creation in upstate New York.
The United States leads the Bitcoin mining hash rate share by nation, accounting for 37.8% of the Bitcoin network hash rate. The two-year moratorium on PoW mining might be costly and potentially create a precedent for other states.
New York has some of the country’s most stringent crypto exchange regulations. The state implemented the BitLicense regulatory scheme in June 2015, which has been condemned for being anti-crypto. BitLicense applies to crypto companies that transfer, purchase, sell, exchange, or issue a cryptocurrency.
Tesla and Twitter CEO Elon Musk has been making bullish statements about Bitcoin and Dogecoin despite crypto market sell-offs. Currently, he hints about making a new alternative phone in case Google and Apple Inc. remove Twitter from their app store.
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