New York City Mayor Eric Adams remains focused on turning New York into a cryptocurrency hub, but believes that goal can be combined with statewide efforts to curb the environmental costs associated with cryptocurrency mining, according to reports on November 25.
Comments follow the new law signed by New York Governor Kathy Hochul, banning proof-of-work (PoW) mining activities for two years in the state. The mayor, known for being a cryptocurrency advocate, said in June that he would ask the governor to veto the law.
With the law signed, the city will work with lawmakers to find a balance between the development of the cryptocurrency industry and legislative needs, Adams told The NY Daily News:
“I’m going to work with legislators who are in support and those who have concerns, and I think we’re going to come to a great meeting point.”
The PoW mining moratorium will not only ban new mining operations, but will also deny license renewals to those already operating in the state, Cointelegraph reports. Any new PoW mining operation in the state could only operate if it uses 100% renewable energy.
The United States leads the Bitcoin mining hash rate share by country, with 37.8% of the Bitcoin network hash rate coming from the country. The two-year moratorium on PoW mining could prove costly and even set up a ripple effect for other states to follow.
“We need to become a welcoming place for all technology. And crypto is part of the overall technology we’re looking at,” Adams said. “The question is: how do we make smart decisions to make New York City — and America — a leader in this new technology?” Adams said.
After his election, the politician said on Twitter that he would collect his first three salaries in cryptocurrencies and announced his intention to make New York the “center of the cryptocurrency industry.”
New York has some of the strictest cryptocurrency exchange regulations in the United States. In June 2015, the state introduced the BitLicense regulatory regime, which has been criticized as hostile to cryptocurrency. The BitLicense applies to crypto organizations that are involved in the transfer, purchase, sale, exchange or issuance of cryptocurrencies.
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