The New York State Senate has enacted legislation imposing a two-year moratorium on cryptocurrency mining operations that rely on carbon-based energy sources. This measure follows a similar bill passed by the state Assembly last month and is now awaiting action from Governor Kathy Hochul, who may either endorse the bill or issue a veto.
The legislation specifically targets crypto mining practices that utilize proof-of-work authentication methods, which are known for their high energy consumption. Notably, this method is currently employed by cryptocurrencies like Bitcoin and Ethereum, although Ethereum is in the process of transitioning to a less energy-intensive proof-of-stake mechanism.
During the duration of the moratorium, New York will undertake a study to assess the environmental effects associated with proof-of-work mining. Additionally, recent reports indicate that Governor Hochul has received a $40,000 contribution from the executive of a firm that has repurposed a former aluminum plant for crypto mining purposes.
In related developments, the European Parliament recently voted against a provision in the Markets in Crypto Assets framework that would have instituted a ban on proof-of-work mining.