New York Senate passes moratorium on ban on mining of carbon-based cryptocurrencies

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The New York Senate passed a bill banning cryptocurrency mining operations that use carbon fuel to power their facilities.

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The bill specifically targets proof-of-work mining, which is one of the two most popular mechanisms used by cryptocurrencies to verify new transactions on the blockchain and create new tokens, but it requires a lot of energy to verify transactions on the blockchain.

Some of the most popular Proof-of-Work tokens include Bitcoin, Ethereum, and Dogecoin.

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Alternative, proof of stakewhen cryptocurrencies like ETH2.0 or Avalanche use staking to achieve the same result with less energy and it is considered to be more efficient for scaling than proof of work.

The bill is an attempt by lawmakers to reduce the state’s carbon footprint and “mitigate the current and future impacts of climate change.” bill.

“Crypto mining operations that use proof-of-work authentication methods to validate transactions on the blockchain are a growing industry in New York State,” the post reads. He added that the ongoing expansion of operations will “significantly increase energy consumption” in the state.

If passed, all mining activities in the state based on burning fossil fuels will face a two-year ban. However, mining operations using 100% renewable energy sources will still be allowed to operate.

“Ultimately, this bill will hurt New York more than it helps as these miners will increasingly be concentrated in states like Texas, Tennessee, Washington state and other places that provide solar, wind, hydro and other sources of clean energy,” the statement said. Stephen McClurg, co-founder and CIO of Valkyrie Investments, which oversees WGMI, the largest Bitcoin mining ETF in the US.

The Senate voted 36-27 in favor of the bill after it passed through the New York State Assembly in April. Now he is moving to the table of New York Governor Katie Hochul, who can sign or veto the bill.


Credit: techcrunch.com /

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