New York State lawmakers will soon vote on legislation that would impose a two-year moratorium on bitcoin mining operations.
New York has always been an engine of both economic and technological development, which is why a ban would effectively drive away substantial investments and high-paying jobs for New Yorkers, affecting their growth in the process.
Many people in the state, including Eric Adams, the mayor of New York City, are envisioning New York as the “hub” of the Bitcoin and shitcoin industry.
Unfortunately, all indications are that the memo has not yet reached Albany, as state lawmakers are preparing to pass a two-year moratorium on mining, which would drive the nascent industry out of the state and potentially worsen current carbon emissions.
After an initial, but extremely close, vote that passed the bill through committee on Monday, state lawmakers in the Assembly will soon vote on legislation that would place a two-year moratorium on mining projects in New York.
Legislation like this sends a terrible signal to crypto entrepreneurs and would have a chilling effect on the growth of the industry in New York State.
As more states open their doors to this new industry, New York seems determined to erect as many barriers to entry as it can.
Even if New York closes the door on mining, proof-of-work mining is not going to be banned entirely in the United States.
There is even an opportunity for mining to accelerate the shift to renewable energy in New York by locating renewable projects in areas of the state where transmission problems would make these projects unsustainable.
But Bitcoin mining is already green, as multiple reports suggest. Is New York just not capable to let any new technology flourish?
Despite the economic power that comes from NYC, the state has not exploited the bitcoin industry’s full potential. In fact, since the earliest days of Bitcoin, New York brought up the darkest side of market regulation. The famous BitLicense became a well known regulatory disaster, pushing many startups to change jurisdiction.
It will take more time to educate everyone involved that bitcoin mining is not as bad as is it sounds.