Upstate New York has become appealing to companies that “mine” digital currencies such as Bitcoin. As the state works to balance economic development and climate goals, Democratic Gov. Kathy Hochul signed a two-year moratorium on proof-of-work (PoW) crypto mining into law.
“I am signing this legislation into 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, while also continuing our steadfast efforts to support economic development and job creation in upstate New York.”
Despite its groundbreaking steps, the bill is limited in scope. If a company has already filed paperwork to operate in New York, the moratorium on new or renewed permits does not apply.
The law has raised concerns in the industry that it will encourage other states to follow suit, further harming the industry, which is already facing a difficult stretch among investors.
The signing will trigger a study by the state Department of Environmental Conservation into the environmental impacts of the cryptocurrency mining industry.
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