The New York Assembly is set to vote soon on a moratorium on cryptocurrency mining operations that apply Proof-of-Work (PoW) authentication to validate blockchain transactions, following which the bill will be referred to the Senate for approval if successful.
The law was introduced as A. 7389C / S. 6486C in the framework of the Climate Leadership and Community Protection Act, which demands that “statewide greenhouse gas emissions be reduced by 85% and that the state has net-zero emissions in all sectors of the economy by that time.” According to the proposed regulation:
If both the Assembly and the Senate approve the bill, it will require comprehensive generic environmental impact evaluations and effectively ban all PoW blockchain mining activities that use fossil fuels, including Bitcoin (BTC) mining, for three years.
The proposed bill is currently the subject of a petition created by New York residents in opposition to it, asking their fellow citizens to vote against it.
Because the bill would effectively ban all Proof-of-Work blockchain mining activities that require fossil fuels, it would have an impact on companies like Stronghold Digital Mining (NASDAQ: SDIG).
Notably, the American company has lately begun mining Bitcoin using electricity generated by decades-old coal power stations. The efforts are part of the company’s efforts to clean up its environment.
In other news, in mid-March, the European Union Parliament voted against a ban on the PoW mechanism that supports cryptocurrencies such as Bitcoin and Ethereum. Concerns that Bitcoin’s growing popularity would need more energy usage for mining it, and hence a greater impact on the environment, prompted the vote.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
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