New York becomes the first state to impose a ban on cryptocurrency mining that uses carbon-based fuel and proof-of-work algorithm. Under the new legislation, already operating miners will be refused new licenses and any new crypto mining facilities will be obliged to utilize 100% renewable energy.
The S6486D bill was first passed by the state assembly in April and then was approved by the state senate in June, putting a full stop to New York’s burgeoning crypto mining industry that flourished due to low energy costs and cool climate.
“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,” Hochul wrote in a memo for the bill.
“I will ensure that New York continues to be the center of financial innovation, while also taking important steps to prioritize the protection of our environment,” Hochul added.
A similar moratorium on PoW mining was proposed by European crypto regulators in their Markets in Crypto Assets (MiCA) bill. However, the EU Parliament ECON Committee rejected the clause, so the legislation was eventually passed without such a ban.