Why Is Crypto Community Against NY Assembly Pushing For A Two-year Moratorium?

Back in March, the Environmental Conservation Committee of the New York State Assembly voted to put forth a two-year moratorium bill on PoW authentication methods for blockchain crypto mining, for power plants that create their own electricity using carbon-based fuels.

Crypto mining enterprises have popped up all across New York, particularly in the Finger Lakes region, throughout the years. Resurrecting destroyed fossil-fuel plants is a new technique used by mining firms doing business in New York state.

Greenidge Generation Operates Power Plants

Greenidge Generation operates a (now) natural gas-powered power plant and a Bitcoin mining facility on the property, with plans to establish four new buildings on the property. Because of its possible environmental impact on the lake and air quality in the area, the power project has continued to raise environmental concerns. Sustainability advocates and New York politicians are concerned that the power plant now uses a maximum of 44 MW for ASICs.

As a result of Greenidge’s efforts, a new Assembly bill was already introduced that would impose a two-year prohibition on PoW authentication techniques for blockchain crypto mining for operations like power plants that generate their own electricity using carbon-based fuels.

Proof-of-work cryptocurrency mining activities, according to the Assembly bill, increase energy consumption across the state and contradict the state’s energy and climate goals set forth in the Climate Leadership and Community Protection Act (CLCPA). By 2050, that Act mandates a statewide reduction of 85 per cent in greenhouse gas emissions, with the state having net zero emissions in all sectors of the economy.

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The Department of Environmental Conservation in New York has approved Greenidge’s application for an air-quality permit renewal. Kelles’ new measure aims to stop new air-quality licences for crypto mining from being issued.

Power producers and crypto industry members in the state are opposed to the new bill, believing that a separate bill enacted by the state Assembly last month to establish a task force to better understand the business would be more beneficial.

The environmental conservation committee chamber has not scheduled the new bill for a floor vote.