New York Passes Bill To Prohibit Bitcoin Mining For The Next Two Years – Here’s Why It Matters

Senate members in New York have passed a landmark bill that puts a stop to new permits granted for mining cryptocurrencies at plants powered by fossil fuels. The Senate’s measure squarely targets proof-of-work authenticated mining, a system for mining cryptocurrencies that is extremely energy-hungry and currently forms the backbone of Bitcoin and Ethereum ecosystems. Just to be clear, the bill doesn’t affect cryptocurrency transactions carried out in the state.

The bill seeks a two-year moratorium on any new permits granted to bitcoin mining facilities that involve fossil fuel consumption. According to a statement released by the Office of Senator Kevin S. Parker, the bill ensure that the “state pauses the dirty practice of refiring retired fossil fuel power plants for crypto mining.” It will now be forwarded to the Governor whose signature will officially turn it into a legally binding article that will be enforced across the state of New York.

The bill has been passed over growing environmental concerns and has also commissioned a study that will assess the true climate impact of cryptocurrency mining in the state. The study will check the compliance of these cryptomining facilities with the state’s Climate Leadership and Community Protection Act. Senate members voting in favor of the bill are of the opinion that retired power plants should not be revived to guzzle fossil fuel for cryptomining and jeopardize the state’s landmark climate law.