Breaking: New York State To Ban Bitcoin Mining
The New York Senate on Friday approved a bill banning crypto mining in the state, following an early vote.
The bill now heads to Governor Kathy Hochul, who can either veto the bill or sign it into law. If approved, New York will become the first U.S. state to ban crypto mining.
The bill, which had cleared the lower house earlier this year, calls for a two-year mortarium on crypto mining in the state. A bulk of its contention with mining stems from concerns over its environmental impact.
Specifically, the bill calls for an end to mining operations that use a proof-of-work model. This includes major tokens such as Bitcoin and Ethereum.
Climate concerns drive ban
The bill seeks to bring down New York’s carbon footprint, which its backers believe come from dirty energy sources.
But a bulk of New York’s electricity comes from nuclear and renewable sources. Mining in the state also resorts largely to renewable sources of energy.
The bill was widely lambasted by crypto groups, with bodies such as the Blockchain Association starting a campaign against a ban.
This moratorium bill is a job killer and sends a terrible message to crypto entrepreneurs.
-Barry Silbert, CEO of Digital Currency Group said in a tweet
Pro-crypto groups argued that the bill could drive companies out of New York, impacting its economy. The state is already host to several mining operations.
Crypto proponents also fear that the bill could cause a domino effect in the country, with several other states passing similar laws. The United States currently has the biggest share in the global hash rate, at about 38%.
Texas to become mining mecca?
With New York set to crack down on mining, companies have been flocking to Texas. The state has crypto-friendly legislature, coupled with a more accessible power grid and an abundance of renewable energy.
Several miners are already setting up facilities in the state. Argo Blockchain is constructing a nearly $2 billion facility in the state.
Electric car maker Tesla is also setting up a mining site in Texas, through a partnership with Blockstream and Block.
- Asset Manager Pushes 45% HYPE Token Supply Cut, Analyst Calls $100 Price Target by Year-End
- Fed Jerome Powell Speech Today: Bitcoin, Ether ETF Data Signals Selloff Sentiment
- Trump’s WLFI Confirms Debit Card & Retail App Launch Amid Partnership With Bithumb
- Vitalik Buterin Addresses Key Myths Over Coinbase L2 Base Custody Concerns
- 21Shares Spot DOGE ETF Secures DTCC Listing as Expert Predicts Dogecoin Rally
- XRP Price Prediction: XRP Price Rises on mXRP Launch, Recovery Ahead?
- Solana Price Prediction: $836M Whale Transfer Spark Fear of $200 Retest Before 62% Rebound
- Bitcoin Price Prediction: $150K in Q4 as Gold’s ATH Momentum Sets the Tone
- PUMP Price Forecast: Whale Buys 1B Tokens as Bullish Pennant Signals 65% Breakout
- Bitcoin Price Prediction: Analyst Highlights Breakout Patterns as Coinbase CEO Backs Crypto Structure Bill
- Dogecoin Price Prediction: Grayscale ETF Move Aligns With Cycle Breakout
Why Trust CoinGape
CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights Read more…to our readers. Our journal analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
