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Crypto Mining Might Be In Danger In The State Of New York With This New Bill

A bill proposed in the New York State could force local miners of Bitcoin (CRYPTO: BTC) and other crypto assets to move or stop their activities for three years.

05/07/2021 13:40

A bill proposed in the New York State could force local miners of Bitcoin (CRYPTO: BTC) and other crypto assets to move or stop their activities for three years.
What Happened: The New York Senate Bill 6486 was proposed by a Democrat senator and Chairman of Committee on Energy and Telecommunications, Kevin S. Parker. 

It was co-sponsored by the Chair of Committee on Aging, Chair of Legislative Commission on Rural Resources and Democrat senator Rachel May.

The bill is aimed to enforce a moratorium on crypto asset mining activities in response to the environmental concerns caused by the activity allegedly consuming large quantities of fossil fuel-generated electricity.

What It Means: The bill would also impose new rules for crypto mining operations after they would be allowed again, including the requirement to undergo an environmental impact review preventing facilities not complying with local climate change targets from operating. The bill was referred to the Environmental Conservation Committee on May 3 to act in accordance with New York’s “Climate Leadership and Community Protection Act.”

The bill claims that "a single cryptocurrency transaction uses the same amount of energy that an average American household uses in one month." For this reason, the regulators suggest:

“It is reasonable to believe the associated greenhouse gas emissions will irreparably harm compliance with the Climate Leadership and Community Protection Act in contravention of state law.”

What Else: As the cryptocurrency space reaches the attention of mainstream media outlets and investors, the debate concerning its environmental impact is heating up. While detractors move claims such as those above, Bitcoin proponents make counterarguments that concerns over pollution caused crypto asset mining activities are overblown or entirely unfounded.