Eric Adams, New York City’s mayor, spoke out against a bill that would have effectively banned Bitcoin mining in New York State for the next two-years.
This bill will place a moratorium for two years on Proof of Work (PoW), crypto miners that do not use 100% renewable electricity. The state of New York’s environmental agency is also investigating the impact of mining on the environment. The bill was passed by the State Assembly on June 3, and is now waiting for Governor Kathy Hochul to sign it.
Crain’s reported Monday that Mayor Adams stated to Crain’s that he plans to ask Governor Hochul to veto the bill because of the economic harm it will cause to the state’s citizens. Mayor Adams is a strong supporter of crypto industry. He has previously accepted BTC as a payment for his salary.
SCOOP @CrainsNewYork Today, Eric Adams, @NYCMayor, learned that he will ask @GovKathyHochul for a veto of the #cryptocurrecy Crypto Mining Bill which places a two-year pause on all new mining operations. Read it here: https://t.co/X0zjbJWJ8J
— Brian Pascus (@brianpascus) June 13, 2022
Now, he stands with miners and says that the bill is unfair. He stated that “we cannot continue to place barriers in place for miners who want to boost the state’s economic growth with the “billions” of dollars spent on cryptocurrency in the state.
“I will ask the governor to veto the bill that will get in the way cryptocurrency upstate.”
The bill’s original sponsor Anne Kelles, is concerned that miners who burn fossil fuel-burning power stations could hinder the state’s efforts to reduce carbon emissions by 85% by 2050. New York generates over 50% of its electricity using renewable sources. It is also closing down old fossil fuel power plants in order to reach that goal.
Kelles, the Assemblyperson, told the New York Post that Mayor Adams’ support for miners was a surprise. He said that he wanted New York to “go back to the stone age cryptocurrency” and had spoken out against them in February.
According to the Cambridge Bitcoin Electricity Consumption Index, December 2021 data, New York is fourth largest contributor of hash power in America.
CNBC reported that industry insiders said on June 3 that New York’s decision not to allow miners to work in the city could cause a ripple effect throughout the industry. Cointelegraph reported that John Warren, CEO of GEM Mining, believes that miners will move to more friendly states with better incentives.
Related: Old Bitcoin mining rigs risk ‘shutdown’ after BTC price slips under $24K
According to the Bitcoin Mining Council, around 50% of Bitcoin miners worldwide get their power from renewable sources. Innovative technologies are required in order to make miners less dependent on fossil fuels. Mayor Adams suggested that New York-based miners be given deadlines to reduce their carbon emissions by a specific date. He said, “Give us an objective, not bans.”
Eileen Wilson –Technology and Energy
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