A bill that targets proof-of-work mining (PoW) was approved by the New York State Senate on Friday, June 3 in order to address some of the environmental concerns that have been raised about cryptocurrencies.
Bitcoin (BTC) and a few other cryptocurrency projects employ the PoW technique of consensus to validate transaction requests.
It’s worth mentioning the bill, which was approved by the state Assembly the previous month, would impose a two-year embargo on any new carbon-based fuel-powered PoW mining projects in the state of New York. However, current mining firms or those in the process of renewing their licences would be authorized to continue operating.
Just one facility impacted by the bill
According to Senator Kevin Parker, the Democratic sponsor of the proposal, there is now just one facility of this kind that is operational, and it will not be impacted by the bill in any way. He also said that there was a possibility that one of the pending applications might be put on hold until the research was finished.
Following the failure of the Senate Environmental Conservation Committee to address the measure during its last meeting of the session, many people anticipated that the bill would perish in committee, much like the previous version did the previous year.
In May, the leader of the committee, Senator Todd Kaminsky, voiced worry that the legislation would have adverse effects on New York’s economy if it is regarded as being anti-Bitcoin and anti-crypto. This perception would make the measure more likely to be opposed by people.
On the other hand, because of a last-minute referral made by the Environmental Conservation Committee to the Senate Energy and Telecommunications Committee on Thursday evening on June 2, the legislation was only able to make it to the full Senate floor for a vote a few hours before the legislative session concluded at midnight.
New York’s hydroelectric power
Bitcoin and other cryptocurrency mining businesses have long considered New York a desirable site for setting up shop due to the state’s relatively inexpensive power generated by hydroelectric electricity.
In recent years, mining corporations have been repurposing coal power stations that were previously abandoned for their own purposes.
The mining companies who operate in the state of New York have publicly stated their intention to relocate to jurisdictions that are more mining-friendly, such as Texas, in the event that the ban is passed into law.