Policy | New York, USA, plans to ban cryptocurrency mining

On May 3rd local time, the New York State Senate submitted a new proposal that aims to ban the operation of cryptocurrency mining centers until the New York State government can confirm the impact of mining on the environment.

The New York State Senate proposal is Proposal No. 6486, which was initiated by Democratic Senator Kevin S. Parker, Chairman of the Energy and Telecommunications Committee, and co-submitted by Democratic Senator Rachel May, Chair of the Aging Committee and Chair of the Legislative Committee on Rural Resources.

The proposal has not yet received widespread support from other senators, but it is worth noting that the Democratic Party has always had an advantage in the House of Representatives and the Senate. The original proposal stated that it hopes to "suspend the operation of cryptocurrency mining centers" to reduce the impact of fossil fuel mining on the environment.

At the same time, the proposal will also impose stricter regulations on major mines and mining centers, such as requiring these companies to undergo an environmental impact assessment (before opening) to see if they can meet New York's climate change goals. If not, mining will be banned.

The proposal was submitted to the Environmental Protection Committee on May 3rd local time. It was allegedly drafted to comply with New York's Climate Leadership and Community Protection Act. The proposal states:

“One cryptocurrency transfer uses as much energy as an American household in a month, and estimates of global energy use are comparable to that of the country of Sweden.”

The proposal also said: "There is reason to believe that greenhouse gas emissions associated with (mining) will cause irreversible (environmental) harm, inconsistent with the Climate Leadership and Community Protection Act, and will violate state law."

New York State passed the Climate Leadership and Community Protection Act in 2019, which aims to achieve a goal of 70% sustainable energy by the end of 2030, 100% zero carbon emissions for electricity by 2040, and reduce 22 million tons of carbon emissions by improving energy efficiency and electricity.

If Proposition 6486 is voted through, mining operations in New York State will be dealt a fatal blow. Take the environmental assessment report, for example. Its lengthy and rigorous nature will be a headache for local mining companies. The environmental assessment will check whether mining companies meet greenhouse gas emission requirements, and their impact on water quality, air quality, and wildlife will all be tested. The mine of the well-known mining company Greenidge Generation is located in Dresden, New York. Last year, the company mined about 5.5 bitcoins a day. The company originally planned to go public this year. If the bill is passed, the listing will undoubtedly be shelved.