thecoinrepublic.com
- 1 A crypto mining bill was introduced in the Pennsylvania state.
- 2 The bill is awaiting amendments before it gets approved.
- 3 The bill has been passed now with 13 in favor of it and 12 against it.
The crypto mining industry has seen tremendous growth in the past years reflecting the global crypto market’s growth. However, the energy and environmental concerns remained constant and governments across countries were seen to counter the issue. Recently a bill around crypto mining was introduced in Pennsylvania state. The bill presented in the state House had to go through an amendment which is getting more attention.
Originally, the bill had a provision to impose a two-year moratorium on new power sources which would prohibit them from facilitating power to crypto-mining firms in the region. In addition, the legislation also highlighted its authority over data related to facilitating electricity and mining operations.
The bill dubbed Cryptocurrency Energy Conservation Act passed in the Pennsylvania House Environmental Resources and Energy Committee. Though the bill was introduced to the Committee in June itself, it waited for approval long enough due to the demand for amendments. In addition, the bill has been passed with a marginal majority with 13 in support and 12 against it.
Democratic Representative, Greg Vitali and chairperson of the committee sponsored the legislation. While he was the one to bring the bill and push it to the committee, he also had to amend the bill. He stated that it was due to the pressure from members of his own party, the Democratic Party, who were pressured by the labor groups.
Democrats Against the Crypto Mining Moratorium Part
In his statements given to a local media outlet, Vitali said that his own colleagues were reluctant to support the bill. Vitali attributed the unwillingness to vote in favor of comprehensive environmental laws to what he referred to as a persistent resistance to sound environmental policies within construction trade labor unions.
In all honesty, Vitali pointed out that labor unions hold significant influence over House Democrats and can sway members who would otherwise endorse beneficial environmental policies. He emphasized that voting against the unions’ preferences could jeopardize lawmakers in swing districts and the Democratic majority.
Vitali expressed that he learned through challenging experiences in his first six months as the majority chair that there isn’t much appetite for robust environmental policies, even within his own caucus.
Pennsylvania has become a suitable option for energy-consuming industries like crypto mining due to cheap electricity and tax incentives. Settling down companies in the region might be useful in monetary terms and for boosting employment. However, environmentalists are concerned that the increasing pollution will hamper the environmental balance and push the state away from its climate goals.
The broader crypto mining industry, on the other hand, is preparing for what is known to be a keystone event for the crypto industry—Bitcoin halving. Following the instance, the mining reward on BTC mining will be reduced to half, from existing 6.25 BTC to 3.175 BTC. The leading cryptocurrency holds the majority part of the overall crypto mining space and hence, it is likely to have a major impact over the space.