NY State Senate to Vote on Crypto Mining Bill

Neither this post nor any other on cryptofal.com should be taken as financial advice. It is not.

Last week, the New York State Assembly voted and passed Bill A7389,  which would place a two-year pause on permit applications for fossil fuel-powered plants that support Proof of Work (PoW) mining operations. Miners already operating are allowed to continue for the extent of their permit, but will be ineligible to renew if the source of their energy continues to be fossil fuels.

Initially introduced last year, the bill originated in the State Senate and was passed to the Assembly where it failed to garner approval. It has since gone through a series of amendments and was passed last Tuesday by the Assembly. The bill currently awaits approval by the Senate, where many anticipate it to encounter little opposition. Cryptocurrency supporters, however, have strong objections to what they express is a discriminatory action against the quickly expanding industry.

Unsurprisingly, the squeeze on mining operations has been met with contention on the part of mining companies and other leaders in the crypto industry. Many feel this direction to be a mistake, as it would limit the appeal of New York to prospective crypto companies looking to set up shop and bring jobs to the economy. New York City already serves as headquarters to numerous crypto companies and leaders in the community see this as one more way state laws are becoming inhospitable to growing this sector. 

It’s difficult to feel differently when one sees how other states like Florida and Texas are courting the mining and crypto industry–but the bill itself will not affect the industry in the way some have portrayed it. Mining is a small sector in a much larger community of the cryptocurrency industry and Web3 economy. What’s more, New York legislators are not the first to criticize PoW mining.

The PoW mining sector of crypto has already received worldwide attention for not only the amount of energy required to approve transactions but for the methods of employing fossil fuels and contributing to greenhouse gas emissions. The answer is not in bending legislation to approve the means but to seek other energy resources that would satisfy the goals of the communities. The objective of the New York Senate and Assembly is to achieve their environmental goals by reducing greenhouse gas emissions for the state by 85% over the next 28 years, in addition to achieving net-zero emissions across all industries. 

With this in mind, the legislation reflects the goals of the state and merely pauses fossil fuel-powered operations as opposed to an outright ban. Those using clean energy with more self-sufficient power grids will find an easier time garnering approval for operations and a more hospitable environment for future development.