Gov. Kathy Hochul has signed legislation enacting a two-year moratorium on cryptocurrency mining in New York.
The new law passed the legislation in June, and the governor’s action follows the collapse of the FTX cryptocurrency exchange. However, this new law – which is the first passed by a state – is focused solely on the environmental concerns created by cryptocurrency mining.
According to an Associated Press report, the law suspends new and renewed air permits on the fossil fuel power plants used in the “proof-of-work” blockchain algorithms used in the cryptocurrency mining process. Many environmentalists have expressed concern that the heavy fossil fuel usage in cryptocurrency mining contributes to the climate crisis.
The new law also tasks the Department of Environmental Conservation to determine cryptocurrency mining’s impact on the state’s ability to meet its climate goals.
“I will ensure that New York continues to be the center of financial innovation, while also taking important steps to prioritize the protection of our environment,” said Hochul.
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