New York legislators have voted to enact a bill aimed at harboring certain bitcoin mining firms from using carbon-based energy sources. The law will be added to the state’s existing Environment Conservation Law as an amendment.
The Passed By-Law Is Under Massive Criticism
The legislation seeks to stop cryptocurrency mining companies that use proof-of-work authentication mechanisms like Bitcoin and Ethereum. A proof-of-work mining company will not be allowed to extend or renew their permits for the next two years unless it utilizes 100 percent green energy, and new companies will not be allowed to come online. The Bill’s primary concern is the financial impact of energy-intensive crypto mining.
Several unions and groups in New York, including Independent Power Producers of New York, the Blockchain Association, and other crypto lobbyists, have vehemently opposed the enacted Bill, marked A7389C.
Additionally, various crypto organizations, like the Blockchain Association, have launched efforts to prevent New York legislators from adopting a crypto mining ban. People are being urged to contact their state assembly members and beg them to vote “No” on the Bill because it threatens jobs and creativity.
Enthusiasts Say the Bill Will Not Be Effective
The Bill, according to crypto organizations, does not mitigate climate change because it just prohibits the usage of electricity in crypto mining activities in New York. Crypto miners can shift their operations to adjacent states, but this will significantly impact New York when the expanding industry exits the state. It would put the government behind in terms of crypto innovation.
Jake Chervinsky, US Blockchain Association Head of Policy, stated that the ban on Bitcoin mining would not help reduce carbon emissions even by an ounce. This, according to him, is because the Bill will only push miners to build in other areas where the NY legislations have no influence.
The ban will halt their target – carbon-based fuel proof of work mining – and likely discourage new, renewable-based miners from doing business with the state. According to John Warren, the CEO of Institutional-grade bitcoin mining company GEM Mining, this is due to the possibility of more regulatory creep.
Seasoned bitcoin miners, such as Core Scientific co-founder Darin Feinstein, believe the industry is aware of New York’s anti-crypto mining stance. The Bill is feared that it may produce a domino effect influencing other states to do the same.
The European Parliament, which has weighed Bitcoin mining’s environmental impact, saw the proposed ban on proof-of-work currencies rejected in early 2022.
PoW Mining Revenue Slamps From ATH
Meanwhile, Bitcoin’s (BTC) mining revenue and profitability have continued to fall in lockstep with the asset’s price.
May was one of the worst recorded months in 2022 for Bitcoin miners. The revenue and profitability of the process have continued to plummet. According to data from Ycharts, which sourced data from Blockchain.com, Bitcoin’s daily mining earnings fell by as much as 27% in May.
Daily mining revenue peaked in April 2021 at about $80 million but has since dropped 62% to current levels.