Bitcoin Mining Moratorium Bill passed, but Gov delays final call

Lavina Daryanani
Source: Crypto Business World

On 3 June, the New York Senate passed a bill to ban Proof of Work mining that uses carbon-based energy. The PoW consensus mechanism, as such, is used by Bitcoin and other crypto projects to validate transactions.

The bill would essentially put a two-year moratorium on any new carbon-based fuel-powered PoW mining ventures in New York. However existing mining companies or those in the process of renewing their permits would be permitted to continue operating. As reported earlier, the measure passed the Senate with a 36-27 majority.

The Bitcoin mining wait game is on

Well, even though the bill has been passed, the final decision lies in the hands of the governor Kathy Hochul who has the power to approve or veto the legislation. With the primary elections coming up on 28 June, the governor’s plate is already full. Resultantly, neither she nor her team has had the time to pay heed to the moratorium bill.

In a recent news conference, she said,

“We’ll be looking at all of the bills very closely, so we have a lot of work to do over the next six months.”

The moratorium, as such, would be the first of its kind in the country and has the potential to stunt New York’s ability to compete in the market. In fact, when the governor was asked about her stance on the legislation last month, she said,

“There’s a balancing act involved here… I understand the passion on both sides of the issue.”

The outright ban would eventually end up impacting the job market, and Hochul has remained quite sensitive to the same. She had earlier opined,

“We have to balance the protection of the environment, but also protect the opportunity for jobs that go to areas that don’t see a lot of activity and make sure that the energy that’s consumed by these entities is managed properly.”

Coming at a decision in haste that would impact the lives of many would not serve the purpose. So, perhaps, better late than regret.