On June 13, the Mayor of New York City, Eric Adams, publicly came out against the state’s PoW mining ban legislation. If passed, the bill would ban proof of work crypto mining in the city for the next two years.
Details of the Bill
The proposed legislation seeks to place a two-year halt to proof of work crypto mining activity if an operation does not source its power 100% from renewable energy. This bill is being considered at a time when New York State’s environmental agency has been investigating how crypto mining affects the environment. The bill was passed on June 3, 2022, and is now awaiting the governor’s signature to become law.
Action Mayor Adams Will Take
According to a local media report, the Mayor of NYC plans to request the Governor to veto the bill due to the economic impact it would have on miners in the state. Mayor Adams has been one of the biggest proponents of crypto in the US. Before he became mayor, he had promised that he would accept BTC for his first salary, a promise that he kept.
What its Proponents Think
The bill received widespread support in the state’s legislature, and its supporters have some strong opinions. According to Anna Kelles, who sponsored the bill, she is worried that using the state’s fossil fuel power plants to mine crypto could set the state back on its goal of cutting carbon emissions by 85% by 2050. Today, New York State gets over 50% of its power from green energy sources, having shut down most of its older fossil fuel plants to cut back on carbon emissions.
While speaking to the New York Post, Anna Kelles stated that Mayor Adams’ support for crypto miners was surprising. In her opinion, the mayor is essentially asking New Yorkers to “go back to the stone age of cryptocurrency.”
Role of New York is Crypto Mining
Current data shows that New York is a significant player when it comes to crypto mining in the US. The state is the fourth-biggest contributor to hashing power in the US. As a result, when the bill goes through, it will have a significant impact on a large number of people in the US crypto mining sector.
Impact on Crypto Miners and the Sector
Some have predicted that once the bill becomes law, it could have a knock-on effect on the entire sector. However, not everyone is convinced. Some in the crypto sector believe that such a bill will only incentivize miners to move to other states where crypto mining laws are friendlier.
One such state is Florida, which is one of the most crypto-friendly states in the US. Another great state for the crypto sector is Wyoming, which has in the recent past, passed some of the most crypto-friendly laws of any state in the US.
Impact of BTC on the Environment
There has been a lot of fuss made about the energy consumption by crypto. However, the data shows that globally, around 50% of BTC mining power comes from renewable energy sources. One reason for this is that renewable energy sources, such as hydroelectric power from China, are extremely cheap.
Mayor Adams addressed concerns regarding the environmental impact of crypto mining. In his opinion, the state should give miners deadlines to reduce their carbon emissions by certain dates, instead of outright bans on the sector.
