The proposed bill, number A7389C, had seen massive backlash from several unions and communities in New York, including Independent Power Producers of New York, the Blockchain Association, and other crypto lobbyists.
The proposed bill seeks to establish a moratorium on cryptocurrency mining operations that use proof-of-work authentication methods, such as Bitcoin and Ethereum. The main issue bought up by the bill is the economic impact of energy-intensive crypto mining.
Voting on the bill will begin during an assembly session on April 25.
However, the bill had faced massive opposition from unions, associations, and crypto communities. The Independent Power Producers of New York has raised concerns over the bill prohibiting business activity in relation to the power supply and enforcing a ban on permits for power plants.
In addition, several crypto bodies such as the Blockchain Association have started campaigns to stop New York legislators from imposing a curb on crypto mining. The campaigns urge people to ask their assembly members to vote ‘No’ on the bill as it threatens jobs and innovation.
Crypto associations claim the bill fails to prevent the impact on the climate because it simply bans electricity use in crypto mining operations in New York. Crypto miners can simply move to neighboring states to start their operations, but it will severely impact New York as the burgeoning industry leaves the state. It would leave the state behind in crypto innovation.
The European Parliament earlier this year rejected a proposed ban on proof-of-work currencies, which had also scrutinized Bitcoin’s environmental impact.
Crypto adoption is increasing across the U.S., and also in New York State. Even, Wall Street is witnessing increased demand for bitcoin and other cryptocurrencies. Crypto mining in New York had boomed since China banned crypto mining.
New York City Mayor Eric Adams also opposes the crypto mining bills as he knows the advantages of cryptocurrencies and crypto mining. The crypto community aims to use energy-efficient resources and equipment to reduce emissions.