Cryptocurrency

Proposed New York Bitcoin mining ban watered down to allow green projects

proposed-new-york-bitcoin-mining-ban-watered-down-to-allow-green-projects

A proposed crypto mining ban, which calls for a forced three-year hiatus on all mining operations in New York, has been watered down – and will now enable green projects.

The bill was passed in the Senate on June 8th and has now been transferred to the state parliament. If the bill is passed in the Assembly, it will be put before Governor Andrew Cuomo to either approve or reject the bill.

The original New York Senate Bill 6486A aimed to halt all crypto mining for three years in order to conduct environmental impact assessments for mining operations in the tri-state area.

However, the bill was changed in the Senate to get it over the line, and the revised 6486B bill now focuses solely on all companies that use carbon-based fuel sources to run proof-of-work crypto mining.

#NYSenate Bill S6486B, sponsored by @SenatorParker, passed (36-27, unofficial). Establishes a moratorium on consolidated operations that use proof-of-work authentication methods to validate blockchain transactions: https://t.co/P2gDKdPnL5

– New York State Senate (@NYSenate) June 8, 2021

There is no longer a specific time frame for the crypto mining ban as the bill prevents the expansion of any carbon-fueled mining operations, as well as the establishment of new mining operations using non-renewable energy sources.

The amended bill also requires documentation on energy yield, carbon footprint and the type of fuel used by all crypto miners.

Governor Cuomo stated on June 7th that he was unfamiliar with the proposed ban but was aware of environmental concerns related to the crypto mining industry:

“There are serious concerns. There is no doubt about that. There are serious concerns. And I’ll look at the legislation. “

New York lawmakers’ scrutiny of crypto mining appears to be tied to its sustainable energy goals, with the bill referring to the state’s Climate Leadership and Community Protection Act

The Protection Act aims to reduce greenhouse gas emissions by 85% by 2050 and not to achieve any net emissions from all sectors of the economy within this timeframe.

An ongoing problem affecting some New York residents is the approved expansion of Greenidge’s gas-fired bitcoin facility on Seneca Lake – which aims to provide 85 megawatts of power for bitcoin mining by 2022.

The company’s reported transition from coal to natural gas, along with its recent move to carbon neutrality through carbon offsetting, has not dampened opposition from the Seneca Lake Guardian environmental group.

The group found on June 5 that the Greenidge had merely switched from a coal-fired power plant to a “fracked gas plant” and complained that the Department of Environmental Conservation (DEC) had failed citizens by doing it “A new” unfinished environmental impact statement “:

“Greenidge is now burning fossil fuels to make the wrong money amid climate change, with no regulation or oversight.”

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Melinda Martin