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New York Gov. Kathy Hochul has signed a two-year moratorium on Bitcoin (BTC-USD) mining operations powered by carbon sources, also known as proof-of-work crypto mining.
The legislation makes New York the first state to impose a partial ban PoW mining, a process that allows crypto miners to earn digital rewards by solving complex mathematical equations to authenticate transactions while consuming a significant amount of computing power.
The New York State Senate passed PoW-focused legislation in June to address concerns about the high energy consumption of Bitcoin (BTC-USD) mining and its negative impact on the environment.
Sustainable crypto miners (think of those using proof-of-stake consensus mechanisms) have likely cheered the green legislation as it could unlock more market share for them. On the other hand, PoW miners have fought fiercely against the law since it was passed by the State Assembly in May.
“I will ensure that New York remains at the center of financial innovation while taking important steps to prioritize protecting our environment,” Hochul said, as quoted by The Wall Street Journal.
Bitcoin (BTC-USD) miners, particularly Core Scientific (NASDAQ:CORZ), Argo blockchain (NASDAQ:ARBK) (OTCQX:ARBKF) and Iris Energy (NASDAQ:IRS), are dealing with a difficult mining environment as low BTC prices eat away at revenues and a rise in energy prices increases costs and thus depresses profitability.
Miners: Riot Blockchain (NASDAQ: UP), Marathon Digital (NASDAQ: MARA), HIVE blockchain technologies (NASDAQ:HIVE), BIT mining (NYSE:BTCM), Hut 8 Mining (NASDAQ: HUT), bit farms (NASDAQ:BITF), bit digital (NASDAQ:BTBT), CleanSpark (NASDAQ:CLSK), Greenidge Generation (NASDAQ: GREEN) and Soluna Holdings (NASDAQ:SLNH).
In July, Senator Elizabeth Warren called for crypto miners to disclose energy use and emissions.
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