Crypto mining in N.Y. unlikely to be curbed

ALBANY — A proposed twoyear moratorium on crypto mining in the Empire State appeared unlikely to gain final approval Thursday as lawmakers finished up the legislative session.

Despite being approved by the Senate last year, the measure stalled in the Democrat-led Senate due to 11th-hour opposition after passing the Assembly earlier in the session.

Opposition to the bill mounted in recent weeks as critics argued that the temporary moratorium would drive tech businesses from the Empire State and send jobs elsewhere.

Sen. Kevin Parker (D-Brooklyn), chairman of the Senate energy committee and the bill’s sponsor, told POLITICO that his chamber’s inaction threatens environmental benchmarks set as part of the Climate Leadership and Community Protection Act.

“The New York state Senate has abdicated its responsibility to address climate change or attempt to meet the goals of the CLCPA,” Parker told the outlet. “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.”

The moratorium would apply to large-scale crypto mining in decommissioned power plants that use fossil-fuel-based energy sources. Crypto, or Bitcoin, mining uses vast amounts of energy as computers solve complex math problems and verify transactions in digital currency.

The legislation would only apply to new permits or renewal permits for power plants and require the Department of Environmental Conservation to issue a generic environmental impact statement after the close of public comment and public hearing period.

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.

Earlier in the day, Attorney General Letitia James issued an alert to New Yorkers, urging caution about the “dangerous risks of investing in cryptocurrencies.”

“Over and over again, investors are losing billions because of risky cryptocurrency investments,” James said. “Even well-known virtual currencies from reputable trading platforms can still crash and investors can lose billions in the blink of an eye.

“Too often, cryptocurrency investments create more pain than gain for investors,” she added.