The Governor of New York State has signed a two-year moratorium aimed at curbing the development of cryptocurrency mining.
A bill passed by the New York State Senate in June that would impose a two-year moratorium on about new digital coin mining operations based on a Proof-of-work mechanism like Bitcoin and powered by fossil fuels was approved on Wednesday by Katie Hochul, Governor of New York.
This ban does not apply to miners who are already operating, but the moratorium does not allow them to renew their permits or expand their activities, except for those using green energy.
I will ensure that New York City continues to be a center of financial innovation while taking important steps to prioritize environmental protection. Hochul
Thus, New York becomes the first state in the US to temporarily ban the mining of a “new” cryptocurrency. The bill had previously been approved by the assembly. This summer, the Senate passed the text with 36 votes in favor and 27 against.
Several figures in the industry took to the plate after the news. For Foundry’s VP of strategy, it’s a “clear signal” that New York is not interested in bitcoin miners. According to Kevin Zhang, the fact that a specific industry has been chosen to ban the use of energy “sets a dangerous precedent.”