A bill pending in the New York State Legislature would impose a two-year moratorium on certain cryptocurrency mining operations in order to reduce the state’s carbon footprint. The bill would specifically address operations that use proof-of-work authentication methods to validate blockchain transactions. According to CNBC, this method is used primarily by Bitcoin, although Ethereum is also using it, at least for another few months. 

The sponsors of the legislation—Assemblymembers Anna Kelles (D), Donna Lupardo (D), Steven Englebright (D), Fred Thiele (I) and Deborah Glick (D)—want to target  mines that use electricity from power plants that burn fossil fuels. During the two-year moratorium, such mining companies would not be allowed to expand or renew permits, and new entrants would not be allowed to come online, unless they use 100 percent renewable energy. 

The New York State Assembly has passed the bill, and it is now under consideration by the Senate, which will soon vote on the measure. CNBC quoted Perianne Boring, founder and president of the Digital Chamber of Commerce, who said,“ If it passes, it would make New York the first state in the country to ban blockchain technology infrastructure.”  

According to CNBC, opponents of the bill say that its passage could result in an exodus of crypto miners from the state, along with jobs and tax dollars. “There are many unions labor unions who are against this bill because it could have dire economic consequences,” Boring said. “Bitcoin mining operations are providing high-paying and high-grade, great jobs for local communities. One of our members, their average pay is $80,000 a year.” 

Other members of the industry are also opposed to the bill. CNBC interviewed Galaxy Digital’s Head of Mining Amanda Fabiano, who said that the net effect of the bill's passage would be to weaken New York’s economy by forcing businesses to take jobs elsewhere. 

“New York will be left behind, losing to other states at best, and at worst, other more progressive nations. New York is setting a bad precedent that other states could follow,” she said.

One provision of the bill would require a statewide study of the environmental impact of proof-of-work mining operations on New York’s ability to reach aggressive climate goals set under the Climate Leadership and Community Protection Act of 2019. This law requires New York’s greenhouse gas emissions to be cut by 85 percent by 2050. Boring said that the recent increase in of support for the proposed ban is linked to this mandate to transition to sustainable energy 

Boring also pointed out that New York is a leader when it comes to state legislation, so there is the potential for a copycat legislation in other left-leaning states. 

Meanwhile, Georgia, North Carolina, North Dakota, Texas and Wyoming have all become major mining destinations.