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New York Bans Crypto Mining To Reduce Emissions May Not Serve Its Purpose

The New York State Senate passed a crypto mining bill targeting proof-of-work (PoW) mining early Friday morning to address some of the environmental challenges surrounding crypto.

Bitcoin (BTC) and other crypto projects use the PoW consensus method to validate transactions. The bill, just passed by the state Congress last month, would introduce a two-year ban on any new carbon-fueled PoW mining projects in New York. However, existing miners or those renewing their licenses will be allowed to continue operating.

The bill received 36-27 votes in favor in the Senate. But Member of Congress, Anna Kelles, said that the move is not an outright ban and it will only restrict certain types of cryptocurrency mining.

Does the Crypto Mining Ban Have Any Purposeful Impact?

Jake Chervinsky, head of policy at the Blockchain Association, explains why the new regulations will have no impact on the environment.

As the anti-bitcoin wing of the NY political establishment wins over the passage of a mining ban, remember: It will not reduce carbon emissions by an ounce. All it does is push miners to build in other places where NY has no influence on them.”

Jake Chervinsky

He said that banning cryptocurrency mining in one state will only push miners to move to another state with friendlier regulations. He also added that the move could have a negative impact. The negative impact occurs when miners are urged to move to an area with little or no regulation that could have an adverse impact on the environment.

New York Bans Crypto Mining To Reduce Emissions May Not Serve Its Purpose 1
Source: Data Center Knowledge

NY had (& still has) the opportunity to lead in crypto broadly and Bitcoin mining in particular. Good policy here means both the carrot and the stick: at a minimum, an incentive for miners to switch to renewable energy is an easy win.

Jake Chervinsky

Jake also highlighted California and said it has an opportunity to learn from New York’s mistakes. He also stated that California must do the same if it is to remain the tech capital of the world.