Currently, the push to suspend cryptocurrency and Bitcoin mining in the United States is gaining momentum in New York as the New York environmental agency assesses the impact of crypto mining on the environment.
On Monday, the New York State Senate introduced a bill to impose a 3-year pause on cryptocurrency mining across the state. In their intentions, crypto mining should be suspended until the federal government discovers its effect on the environment and climate. Bill A7389B is sponsored by Senate members Ken Zebrowski, Amy Paulin and 43 others.
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Over time, crypto mining has gained increasing regulation for the massive carbon footprint related to power consumption for 24/7 operations. A Digiconomist report puts the global mining footprint at around 53 megatonnes of CO2 per year, roughly the same amount as Sweden’s annual carbon emissions.
Recently, the New York Highs have become a hot region for crypto mining activity, and there are opportunities for additional crypto mining on the way.
What bill are we talking regarding?
A7389B is a New York Senate proposal to suspend the activity of the crypto consensus mechanism, the Proof-of-Work (PoW) consensus algorithm that requires users to mine cryptocurrencies. The proposal stated that the suspension should last for three years.
Adding to the 3-year hiatus from Bitcoin and crypto mining at previous fossil fuel power plants, the bill stipulated that the NYSDEC (New York State Department of Environmental Conservation) would examine the cryptocurrency mining industry within the state. According to the bill, this review will assess the effect of crypto and bitcoin mining on air quality, water, and greenhouse gas production.
One of the state officials, Anna Kelles, explained last month that information obtained from NYSEC would allow the agency to determine whether or not it would be appropriate to ban cryptocurrency mining.
The main motivation, she pointed out, is for the state senate to ensure that the crypto industry does not prevent them from achieving their climate goals. So, she submitted the legislation to the New York Legislature in May 2021.
Bitcoin Mining and the New York Senate
Still, for this bill to pass, a larger segment of the state assembly members must vote for it. Currently, out of 150 members, 45 are sponsoring the bill, so that’s far enough for the bill to go.
Additionally, government candidate Jumaane Williams has backed the legislation due to environmental concerns and what he sees as the deteriorating effect of crypto-mining activities.
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PoW (Proof-of-Working) operations require the use of high-end computers focused on performing high-end calculations and solving cryptographic puzzles needed on the blockchain. Some well-known crypto projects that use PoW mining include ETH and the world’s leading cryptocurrency – Bitcoin.
Featured image from Pixabay and chart from TradingView.com
