New York City Mayor Eric Adams spoke out Monday against a bill that is one step away from effectively banning bitcoin mining in the state for the next two years..
The bill is designed to impose a two-year moratorium on Proof-of-work (PoW) cryptocurrency miners who do not use 100% renewable energy.. At the same time, the New York State Environmental Agency is investigating the effects of mining on the environment. The project was approved on June 3 in the State Assembly and now awaits the signature of Governor Kathy Hochul to become law..
Mayor Adams told Crain’s on Monday that he intends to ask Gov. Hochul to veto the bill because of the economic damage it will cause to the state’s residents.. Mayor Adams has been a frequent supporter of the cryptocurrency industry, previously accepting bitcoin (BTC) instead of cash for payment of his salary.
SCOOP @CrainsNewYork I sat down with @NYCMayor Eric Adams today and learned he’s going to ask @GovKathyHochul to veto the #cryptocurrency crypto mining bill that places a two year pause on new mining operations. Read it here: https://t.co/X0zjbJWJ8J
— Brian Pascuas (@brianpascus) June 13, 2022
SCOOP @CrainsNewYork I sat down with @NYCMayor Eric Adams today and learned that he is going to ask @GovKathyHochul to veto the cryptocurrency mining bill that puts a two-year pause on new mining operations. Read it here: https://t.co/X0zjbJWJ8J
Now he stands with the miners against the bill, stating that “we cannot continue putting barriers” to the miners. who want to help bolster the state’s economy with the “billions of dollars spent on cryptocurrencies” in the state:
“I am going to ask the governor to consider the possibility of vetoing the bill that is going to hinder cryptocurrencies in the state.”
Supporters of the bill, like original sponsor Assemblywoman Anne Kelles, are concerned that miners using power plants that burn fossil fuels could set the state back on its path to reducing all carbon emissions by 85%. by 2050. New York generates more than 50% of its electricity from renewable sources, shutting down older fossil fuel power plants to achieve that goal.
Kelles told the New York Post on Monday that the mayor’s support for miners came as a surprise, saying he is essentially asking New York to “go back to the stone age of cryptocurrency.”. Mayor Adams had previously spoken out against the miners in February, according to the Post.
According to data compiled in December 2021 by the Cambridge Bitcoin Electricity Consumption Index (CBECI), New York is the fourth largest contributor of hashing power in the United States.
Industry insiders told CNBC on June 3 that New York’s decision to ban mining could have a ripple effect across the industry.. However, Cointelegraph reported on Friday that GEM Mining CEO John Warren believes miners will simply move to friendlier states with better incentives.
Around the world, around 50% of the energy used by Bitcoin miners comes from sustainable sources, according to the Bitcoin Mining Council. Miners are striving to become less reliant on fossil fuels, which requires innovative technologies. Mayor Adams suggested giving New York miners deadlines to cut their emissions by specific dates. “Give us a target, not bans,” he said..
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