The Senate of the New York state approved moratorium on Bitcoin mining The proposal does not completely ban the sector’s activities, but aims to force the conversion of mining companies to renewables, under penalty of losing the licenses to continue operating in the state. The moratorium lasts 24 months.
It also exclusively concerns cryptocurrencies that use the Proof-of-Work protocol As a result, cryptocurrencies that use other technologies will not be affected by the new law. Etehreum, the leading cryptocurrency alternative to bitcoin, is expected to switch from PoW to the Proof-of-Stake protocol in the coming months.
The law is not yet in force and must be approved by the governor Kathy Hochul. It is not clear at all: the Democratic Party is divided over cryptocurrencies and Hochul himself has received funding several times from some companies related to the crypto sector.
If given the go-ahead from the governor, it would be the first real restriction on cryptocurrency mining approved by a US state. Experts say it could create a knock-on effect, leading to the adoption of similar laws in other states. At least among those led by dem who are more sensitive to environmental issues. Needless to say, it would have significant global impact: nearly 40% of mining activity is concentrated in the US.
Companies operating in the PoW-based cryptocurrency mining sector will have to use only energy produced from renewable sources. Otherwise they will lose the opportunity to obtain new permits and will not be able to renew the permits already granted.
Source: Lega Nerd
