New York was the state where the first Congress and the Supreme Court sittings were held. George Washington, the first POSTUS, was also inaugurated in NY. Therefore, it’s no surprise it’s the first to enact certain laws and regulations. And today, the Empire state is still holding that reputation as a governor enacted the first crypto mining ban in the United States.
The governor Katy Hochul signed off on the moratorium. It took more than six months to create the outline of the ban. Though it sounds harsher than what it is, the ban is not on all crypto mining. Instead, it targets a niche ‘fossil fuels’ mining style that could have negative effects on New York residents.
Ban On Fossil Fuel Power Plants For Crypto Mining in NY
Assemblymember Anna Kelles, spoke on the bill she’s eagerly sponsored.
“This bill will create the pause we need in the current trend of purchasing old power plants in New York for corporate profits and allow us to properly evaluate the impact of this industry on our climate goals before it’s too late.”
And not only this, the bill also passes new regulations on crypto-mining operations that use PoF authentication methods. These types of mines are subject to a complete, generic environmental impact statement review.
Perhaps better said in layman’s terms, the bill will require ‘out of date’ crypto mining operations to pass a quality control inspection to stay in business. If it’s not environmentally friendly, it can be shut down.
Cryptocurrency Creation Uses Extreme Amounts of Power
Crypto mining is being targeted because of its extreme consumption of electricity. Global crypto-mining of Bitcoin burns more power than all US televisions combined. And that’s just Bitcoin alone.
If cryptocurrency becomes more used and normalized, there are worries this type of power consumption could be detrimental to all life forms.
This moratorium also proposes an in-depth study of crypto mining and its environmental impacts.
While the average Joe is not aware of this ‘niche’ business, New York state has seen a rise in requests to re-open now defunct fossil fuel burning power plants. At least 50 of these power grids are now to be put on hold, thanks to this ban.