New York Banning Crypto Mining To Reduce Emissions Might Not Serve Its Purpose

Vignesh Karunanidhi
New York Banning Crypto Mining To Reduce Emissions Might Not Serve Its Purpose
Source: BeinCrypto

The New York State Senate passed a crypto mining bill targeting proof-of-work (PoW) mining early Friday morning to address some of the environmental challenges surrounding cryptocurrency.

Bitcoin (BTC) and other crypto projects employ the PoW consensus method to validate transactions. The law, which passed the state Assembly last month, would slap a two-year moratorium on any new carbon-based fuel-powered PoW mining projects in New York. Still, existing mining companies or those renewing their permits would be allowed to continue operating.

Source: Forbes

The bill received a 36-27 vote in the Senate. But the State Assembly member, Anna Kelles, said that the move is not an outright ban and that it would only limit certain types of crypto mining.

Will the crypto mining ban have any purposeful impact?

Jake Chervinsky, the head of policy at the Blockchain Association, explained why the new regulations would have no impact on the environment.

“As the anti-bitcoin wing of the NY political establishment takes a victory lap over the passage of its mining ban, remember: It will not help reduce carbon emissions by a single ounce. All it does is push miners to build in other places where NY has no influence over them.”

Jake Chervinsky

He said that banning crypto mining in one state will only push the miners to move to a different state with friendlier regulations. He also added that the move could have a negative effect. The negative impact comes into place when the miners are urged to move to an area with less or no regulations that can have an adverse impact on the environment.

Source: Data Center Knowledge

“NY had (& still has) a chance to lead the way on crypto broadly & Bitcoin mining specifically. Good policy here would mean both carrots & sticks: at minimum, an incentive for miners to shift toward renewables is an easy win.”

Jake Chervinsky

Jake also highlighted California and said that it has a chance to learn from New York’s mistakes. He also stated that California must do so if it is to remain the world’s technology capital.