Important point
- New York has passed a bill that sets a two-year moratorium on Bitcoin mining operations in the state.
- This policy affects New York-based mining companies that do not use renewable energy. Currently, one company is excluded.
- If the bill is signed, New York will be the first state in the United States to ban cryptocurrency mining.
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The New York State Legislature has passed a bill banning most cryptocurrency mining.
Bill bans New York cryptocurrency mining
A bill that puts a two-year moratorium on proof-of-work cryptocurrency mining in New York has passed the state’s Senate.
More specifically, the bill text imposes a “moratorium on cryptocurrency mining operations that validate blockchain transactions using proof-of-work authentication methods.”
The bill only imposes a temporary two-year ban. In the meantime, mining operations are subject to a “complete general environmental impact statement review”. Unless a company uses renewable energy, it cannot continue to operate.
Bitcoin mining has become famous for its high energy consumption and emissions. According to data from, this process uses 117 TWh of energy annually worldwide. University of Cambridge..
New York has a considerable hash rate share
The new rules apply to New York-based mining businesses, which make up a significant portion of American mining companies.
As of October 2021, New York-based mining companies account for about one-fifth of the US Bitcoin mining hash rate, according to last year’s data. However, New York mining hash rates are banned.
Not only will this bill affect companies that are currently in operation, but it will also prevent mining facilities that are currently pending applications from starting operations.
According to Senator Kevin Parker, who sponsored the bill, only one mining facility is unaffected by the rules.
Bill is waiting for the governor’s signature
The bill is currently awaiting the signature of Governor Kathy Hokul, who has the right to sign or veto. The rule takes effect as soon as the bill is signed by the governor.
If the bill is ultimately successful, New York will be the first state in the United States to ban Bitcoin mining.
Elsewhere, Bitcoin mining restrictions are rapidly becoming a trend.Countries such as China, KazakhstanIran, Kosovo We have imposed a temporary or permanent ban on Bitcoin mining.
Regulatory group EU When Russia We are also considering limits, but it is not yet clear if these efforts will be successful.
Disclosure: At the time of writing, the author of this work owned BTC, ETH, and other cryptocurrencies.
