With a focus on climate change, New York has introduced a two-year ban on fossil fuel-powered cryptocurrency mining operations.
Gov. Kathy Hochul on Tuesday signed the controversial measure into law that would create the first-in-the-nation temporary pause on new permits for fossil fuel power plants that house proof-of-work cryptocurrency mining, which is a process used in the transaction of digital money.
Hochul, who had punted on the issue for months after the Legislature passed the bill in June, was elected to a full term Nov. 8.
The legislation will impose a two-year moratorium on crypto-mining companies that are seeking new permits to retrofit some of the oldest and dirtiest fossil fuel plants in the state into digital mining operations.
It also requires New York to study the industry’s impact on the state’s efforts to reduce its greenhouse gas emissions.
“As the first governor from upstate New York in nearly a century, I recognize the importance of creating economic opportunity in communities that have been left behind,” the Democratic governor from Buffalo said in the memo accompanying her approval.
“I am signing this legislation into law to build on New York’s nation-leading Climate Leadership and Community Protection Act, the most aggressive climate and clean energy law in the nation, while also continuing our steadfast efforts to support economic development and job creation in upstate New York.”
Earlier this month, the crypto exchange known as FTX suffered a swift and public collapse that led to its declaration of bankruptcy. The fall of what had been a trusted player in the new market has led to broader questions about the future of the exchange, as well as possible criminal charges for its principal, Sam Bankman-Fried.
