State Senate votes to halt Crypto mining — now it’s up to gov
ALBANY — Lawmakers approved a measure Friday that will temporarily halt new large-scale cryptocurrency mining operations in the Empire State.
In an 11th-hour reversal, Senate Democrats approved the bill during a marathon final day of the legislative session. The Assembly passed the measure back in April.
The bill, if signed into law by Gov. Hochul, will place a two-year moratorium on certain cryptocurrency mining operations that use so-called proof-of-work authentication methods to validate blockchain transactions.
The method, which requires vast amounts of energy as computers solve highly complex mathematical equations in order to authenticate a transaction, is used to create cryptocurrencies like Bitcoin.
Environmental groups celebrated the middle-of-the-night win as a major step toward New York’s climate goals as crypto mining companies have turned to repurposing decommissioned power plants to run their operations.
“With this bill’s passage, the legislature has rightly said fossil fuel power plants can’t get a second life in New York just for private industry gain, which would fly on the face of the state’s climate mandates,” Liz Moran, a policy advocate with Earthjustice, said in a statement.
Hours before its passage, sponsor Sen. Kevin Parker (D-Brooklyn) lamented the fact that the bill appeared unlikely to be approved.
“The lack of courage on the cryptocurrency moratorium is especially disappointing because it’s a resource that’s being exploited by people that care nothing for our state,” he told Politico.
By midnight, however, it was clear that the measure would come to a vote in the Senate, which had passed a broader version of the bill a year earlier before it stalled in the Assembly. It was approved 36-27.
Now, it’s up to Hochul to sign off on the moratorium.
The legislation only applies to new permits or renewal permits for power plants and requires the Department of Environmental Conservation to issue a generic environmental impact statement after the close of public comment and public hearing period.
Opponents have argued that the bill will scare off tech companies and investors while sending jobs to other states.
The D.C.-based Blockchain Association, representing the blockchain and cryptocurrency industries, vowed to continue fighting the measure and called on the governor to veto the “misguided bill.”
“We encourage all pro-tech NYers to make their voices heard and ask the governor to veto,” the group tweeted.
The fight comes after a former Finger Lakes coal plant, shuttered in 2011, drew heated opposition in recent years after being repurposed as a natural gas plant powering a massive Bitcoin mining operation.
There are currently 30 such plants scattered across the state.
Assemblywoman Anna Kelles (D-Ithaca) said environmental advocates were responsible for getting the bill across the finish line.
“Hundreds of calls from NYers in the final hours and many long convos here in the capital to keep corporate cryptominers from using NY fossil fuel-based power plants!” she tweeted early Friday.