The bill will levy a two-year temporary suspension against setting up shop in the state of New York.
Crypto mining is infamous for using excessive energy and adding carbon emissions in the environment
Photo Credit: Unsplash/ Lars Kienle
American lawmakers are bringing stringent measures to control how their crypto activities could be prevented from further damaging the environment. The New York Assembly has denied permits for all miners using non-renewable energy to set up mining farms in the Empire state. Miners using carbon-based energy sources will face the brunt of this rule. The decision comes in the backdrop of crypto mining being globally criticised for consuming too much energy and adding substantially to the environment-damaging carbon emissions.
Sponsored by Democrat Anna Kelles, the bill will levy a two-year temporary suspension against setting up shop in the state of New York.
The bill clearly states that the energy department of New York “shall not approve a new application for or issue a new permit for an electric generating facility that uses a carbon-based fuel and that provides, in whole or in part, behind-the-meter electric energy consumed or utilised by cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain transactions,” CoinDesk reported on Wednesday.
The bill was extended to a full vote of the legislative body after approvals from an assembly committee.
Crypto-supporting officials did warn that such a rule could push away crypto miners away from the New York state, leaving several people who work in crypto mining hubs, jobless.
It has however been decided that this new rule applies to only new and upcoming crypto miners who wish to operate from the state. The previously set-up facilities remain unaffected by this rule.
The bill has further urged the state of New York to create an “environmental impact statement”, after analysing all proof-of-work mining facilities in the region.
To mine, or generate a cryptocurrency, complex algorithms need to be solved on advanced computers. These machines need to be plugged-in at all times, due to which they gobble up loads of power causing electricity disruption in areas around.
About 60 percent of Bitcoin-mining activity is powered by fossil fuels.
Even Elon Musk has voiced his concerns around crypto mining driving increased uses of fossil fuels.
Several areas around the world including China, Kazakhstan, and Georgia's Svaneti town have been crippled under power shortages caused by crypto mining.
Recently, five industry experts presented their testimonies before the US House Energy and Commerce Oversight Subcommittee. All five recommended the adoption of greener energies to power crypto mining.
Nayib Bukele, the President of El Salvador and Francis Suarez, the mayor of Miami have already begun working towards harnessing clean energy to power crypto minting.
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