The NY Mining Moratorium’s Odds Just Got a Lot Worse
According to reports, The Senate Environmental Conservation Committee won’t consider the controversial bill that aims to place a two-year moratorium on certain types of proof-of-work crypto mining operations in New York.
The proposed legislation, which was first introduced in April 2021, would have put a two-year moratorium on crypto mining operations that use energy-intensive processes like proof-of-work.
The bill’s sponsor, Senator John Liu, said that the purpose of the moratorium was to give the state time to study the environmental impact of crypto mining.
“This is not about stifling innovation or penalizing an industry,” Liu said in a statement. “It’s about taking a responsible pause to study the massive amounts of energy that these operations consume and their potential environmental impacts.”
However, it appears that the bill will not be moving forward in the Senate, according to a schedule released early Friday morning. The bill was not on the list of bills that the Senate plans to take up before the end of the session on June 10.
The news is a blow to crypto miners in New York, who have been waiting for clarity on whether they will be able to continue operating in the state. The moratorium was set to expire on July 1, but it was extended to September 1 in May.
Now, with the bill not moving forward, it is unclear what will happen to the moratorium. It is possible that it could be extended again, but it is also possible that the state will take a hands-off approach and let the moratorium expire without taking any action.
Either way, the news is not good for crypto miners in New York. The industry was already facing challenges from the high cost of electricity and the lack of clarity on regulations. Now, it appears that the state is not interested in providing any relief to the miners.
The legislation has drawn concern from the crypto industry who fear that the moratorium – which in its current form is much narrower than an earlier version that sought to place an all-out ban on mining for three years – could be the beginning of a slippery slope that ends with all crypto mining being banned in New York.
The bill’s sponsor, Assemblyman Clyde Vanel, has said that the moratorium is not meant to be a permanent ban on crypto mining. However, he has also expressed doubts about the industry’s sustainability in the long run.
Critics of the bill argue that it would be impossible to enforce and that it would harm the state’s economy by driving away from an industry that has invested heavily in New York. They also point out that the state’s power grid is already strained, and that crypto mining operations have actually been helping to alleviate the problem by using excess energy.
The odds of the NY Mining Moratorium becoming law just got a lot worse. The bill was recently amended to extend the moratorium to five years and to make it apply to all types of crypto mining, not just Bitcoin. This means that even Ethereum miners would be affected by the ban.
If the leader of the Senate, Andrea Stewart-Cousins, decides to bring the bill through the Rules Committee before the end of the current legislative session on June 2, and the bill is passed through the committee, it could still end up going before the entire Senate.
The bill’s sponsor, Senator Liz Krueger, said that the changes were made in response to the “pushback” from the crypto industry. She also said that she is confident that the amended bill will pass through the Rules Committee and eventually be signed into law by Governor Andrew Cuomo.
The NY Mining Moratorium would be a big blow to the crypto industry in New York. It would make it very difficult for companies to set up mining operations in the state, and would likely force many existing miners to leave. This would lead to a significant loss of tax revenue for the state, and could have a negative impact on the local economy.