Regulation
Crypto Industry Reacts To New York’s 2-Year Crypto Mining Ban
“To date, no other industry in NY has been sidelined for its energy usage. This is a dangerous precedent to set in determining who may or may not use power.”
NYS Business Council also spoke against the 2-year moratorium on crypto mining signed by Hochul. It stated that the state should not “limit the growth and expansion of any business.”
However, Hochul said she signed the law to build on New York’s nation-leading Climate Leadership and Community Protection Act, the most aggressive climate and clean energy law in the nation. The law also triggers a study on the impacts of the crypto-mining industry on the environment by the Department of Environmental Conservation.
Meanwhile, crypto miners using renewable energy sources are unaffected by the law. Several crypto miners started moving to renewable energy alternatives after several personalities including Tesla CEO Elon Musk raised concerns about energy usage in crypto mining.
New York Crypto Mining Status
New York became one of the biggest crypto-mining hubs after China’s crypto-mining ban last May. Miners moved to New York for its low energy costs and cold climate conditions that induce higher productivity.
However, miners had shifted to other states such as Texas for favorable laws and cheap electricity prices. The crypto industry suggested to New York legislators that a ban will only impact the innovation and economic growth in the state. Miners can simply switch to other states due to unfavorable conditions.
