April 17, 2024

New York Makes Move To Ban PoW Mining 

The former pro-crypto state, New York, is on the verge of taking drastic action against the crypto sector. It all started with the notorious BitLicense, which drove away all crypto companies. Recent news has emerged that they’re contemplating prohibiting Proof-of-Work mining by making it difficult for miners to do business.

Mayor Adam Stands Against Crypto Mining 

The NY Assembly will vote on legislation that would “impose a prohibition on proof-of-work mining enterprises unless 100 percent of their power originates from renewables”. As stated by the Bitcoin Advocacy Project, a group fighting to rescue the state, “It is possible that other nations will follow in their footsteps and make the same error.”

Furthermore, Mayor Eric Adams campaigned on a Bitcoin-friendly platform, talking about collecting his salary in Bitcoin. “New York City will be the heart of the Crypto sector and other rapidly expanding and innovative industries,” Adams assured them. However, the Mayor turned around and proclaimed that he supports cryptocurrencies but not cryptocurrency mining.

It would be an error for New York to implement a ban on proof-of-work mining just like China did since it would drive away high-paying jobs and any prospect of being “the heart of the crypto business.”  The Blockchain Association is another group actively engaged in organizing the public to prevent the state from closing itself off from the rest of the world. The association stated that:

“NY would become the first US state to outlaw cryptocurrency mining via the passage of a legislation that specifically attacks the blockchain sector in order to reduce energy consumption. However, the restriction will have no effect on the environment as mining companies will simply relocate to other states.”

It seems likely that Proof-of-Work mining will persist, even when the legislation is passed. It will utilize the extra energy nobody wants while also funding a wide range of green energy programs and infrastructure projects. “BTC miners are drawn to the inexpensive electricity—they are eager to gather up the abandoned power and salvage the solar and wind systems that may not be profitable,” Nic Carter stated in a letter to legislators in the United States.

Law Awaits Approval By Senate

Following the Assembly’s decision, the Senate must still approve the law, which is good news as the crypto society still has time to make their voices known. Both groups provide a straightforward form that anyone in NY may use to get in touch with them. The Blockchain Association posted a message urging citizens to vote against the bill:

“Currently, cryptocurrency mining is still the only tech that can commercialize green energy and it is a way for New York to expand its production of renewable energy. V ote NO on A.7389C / S.6486D.”

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