New York Moots Two-Year Moratorium on Bitcoin Mining; Senate Passes Key Bill

New York is set to ban Bitcoin mining in the state as the Senate has passed a bill against crypto mining. The bill bans new mining operations powered by carbon-based energy sources for two years.

The decisive power is now in the hands of Governor Kathy Hochul, who can sign the bill into law or veto it instead.

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New York Could Become First State to Ban Blockchain Infrastructure

If the bill becomes law, New York will become the first state in the US to ban blockchain technology infrastructure and it could also have a domino effect across the country, prompting other states to crack down on mining operations powered by carbon energy sources.

Notably, the US accounts for 38 percent of the world's crypto miners. The bill, which State Senate passed on Thursday, was previously passed in the state assembly in April.


Bill Calls For Two-Year Moratorium on Crypto Minning Operations

The bill calls for a two-year moratorium certain cryptocurrency mining operations which use proof-of-work authentication methods to validate blockchain transactions. Proof-of-work mining, which requires sophisticated gear and a whole lot of electricity, is used to create bitcoin, according to CNBC.

During the moratorium, the state officials will conduct a study on the environmental impact of proof-of-mining.

Ban against carbon-based energy sources has forced crypto operations to explore less energy-intensive processes.

Ethereum to Switch to Less Energy-Intensive Process

Ethereum has plans to switch to a less energy-intensive process but still, the company has revealed it could take many months.

Senate voted 36-27 in the favour of the bill, which targets proof-of-work (PoW) mining to address some of the climate concerns seen around cryptocurrencies.

The bill was sponsored by Democratic Sen. Kevin Parker, who claimed that there is currently only one such plant in current operation, which would not be impacted by the bill. He added that there is one pending application, which may be put on hold until the study has concluded, according to CoinDesk.

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