Home CryptocurrencyAltcoin New York governor signs moratorium on PoW mining into law

New York governor signs moratorium on PoW mining into law

by SuperiorInvest

New York Governor Kathy Hochul signed and proof of work (PoW) On November 22, it implemented a mining moratorium, becoming the first state in America to ban any PoW cryptocurrency mining activity for two years.

The PoW mining moratorium will not only ban new mining operations, but also deny license renewals to those already operating in the state. Any new PoW mining operation in the state could only work if it uses 100% renewable energy.

The PoW mining bill was first passed the Land Assembly in April earlier this year and later got State Senate nod in June. The bill was eventually signed by Governor Huchkul under pressure from lobbyists and to meet his carbon emissions targets. Huchkul wrote:

“I will ensure that New York continues to be a center of financial innovation while taking important steps to prioritize protecting our environment,”

PoW mining consensus mostly uses Bitcoin (BTC) miners and several other altcoins. It is considered one of the most secure and decentralized ways of verifying a transaction on the blockchain. However, this practice has been marred by controversy over high power consumption.

The United States currently tops the Bitcoin mining hash rate share by country, with 37.8% of the Bitcoin network’s hash rate coming from the US. follow a similar path.

Blockchain advocacy group Chamber of Digital Commerce he exclaimed fake story in a Twitter post:

“The state’s argument that energy consumption in the mining industry exponentially exceeds other industries is patently false. The Climate Leadership and Community Protection Act calls for New York City’s greenhouse gas emissions to be reduced by 85% and to achieve net zero emissions in all sectors by 2050.

PoW mining FUD is nothing new and has been exposed many times, however, there has been a significant lobbying effort over the past year, especially by proponents of proof-of-stake (PoS) mining. Greenpeace and Ripple co-founder Chris Larsen campaigned for a bitcoin code change.

On the other hand, lawmakers conveniently brushed aside available research reports that a significant portion of Bitcoin mining power comes from renewable sources. A report by the Bitcoin Mining Council highlighted that more than 60% of the BTC network’s electricity consumption comes from clean sources.

European crypto regulators have proposed a similar PoW ban in their Markets in Crypto Assets (MiCA) legislation. However, proponents of banning PoW-based digital asset operations could not get enough supportmeaning the MiCa legislation was passed without such a ban.

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