New York State signs the Cryptocurrency Mining Restrictions Act, a “dangerous precedent” for cryptocurrency supporters.
Mining companies Digital currencies Those hoping to work in New York State will certainly have to revise their plans. Governor Kathy Hochul has I signed a law restricting mining Cryptocurrency in the country, making it the first in the country to end the practice.
New York State signs the Cryptocurrency Mining Restrictions Act
This law focuses on protecting the environment and establishes a two-year moratorium on new permits and renewals for mining farms that use fossil fuels and work with “proof of work.” The Department of Environmental Conservation You will also have to study if and how to mine cryptocurrency affects the voltage Government response to climate change.
The bill was approved last June, but it recently arrived on Kathy Hochul’s desk. It was not guaranteed to become law. hill The governor reportedly failed to sign off on the measure during the October election debate. Her main opponent, Lee Zeldin, said he probably wouldn’t sign her if he was in a position to do so.
A “dangerous precedent” for crypto advocates
Politicians and various environmental groups are concerned about cryptocurrency mining, especially mining involving the “Proof-of-Work” mechanism, which is very energy-intensive. The calculation process adds a significant burden to the electricity grid, with some specialized companies even setting up natural gas-fired power plants to power their operations. The The world of cryptocurrency Try, at times, to lessen its impact. For example, Ethereum recently made a big change, moving to Proof of Stake, which is less power consuming.
It is hard to know if other countries will follow suit. Democratic senators are pressing Texas to take action on crypto mining power demands, but the state government has yet to make a decision. Not surprisingly, cryptocurrency proponents have also rolled back laws restricting their activity. The Chamber of Digital Commerce Claiming that New York law sets a “dangerous precedent” and that proof-of-work mining plays an important role in economic growth. There’s also the issue of the measure’s effectiveness: This law could lead some minors to less restrictive states.