By Hayley Irwin
The modern field of cryptocurrency comes with several implications, a major one being the environment. New York has the opportunity to make real change towards these environmental impacts, starting with the Crypto Mining Moratorium Bill.
On June 2, 2022, the New York Senate passed Senate Bill S6486D, an amendment to the state’s Environmental Conservation Law, that would impose a two-year moratorium [a temporary ban] on cryptocurrency mines meeting specific criteria. The decision is in Governor Kathy Hochul’s hands to either approve or veto the Bill.
If the Bill is signed, there will be a two-year moratorium on the issuance and renewal of air permits, a two-year moratorium of fossil fuel burning plants being used to power behind-the-meter proof-of-work mining, and a required study by the Department of Environmental Conservation to examine the environmental impact of mining cryptocurrency.
The legislation aims to minimize New York’s carbon footprint by regulating specific cryptocurrency mines which use a great deal of electricity. The moratorium will give the Department of Environmental Conservation the chance to investigate the effect of cryptocurrency mining as part of the state’s mission to meet the goals of the Climate Leadership and Community Protection Act (CLCPA). These particular cryptocurrency mining operations may interfere with New York’s climate laws that intend to make the state net-neutral in greenhouse gas emissions by 2050.
Some cryptocurrency miners are opposed to the legislation, as they fear these regulations will discourage miners from investing in New York. Large mining investments can take years to profit from, and miners opposed to these amendments claim that investors won’t risk investing in a state where they may be forced to shut down and relocate.
Governor Hochul has not yet tackled the Bill and has suggested that a decision may not be final for weeks. If Hochul approves the Bill, New York would lead in being the first state to ban specific blockchain technology.