New York passes bill to limit crypto miners using fossil fuel-generated power

In a milestone environmental measure, the New York State Legislature has passed a bill that would impose a two-year moratorium on the use of fossil-fuel power plants to provide energy to miners of cryptocurrencies like Bitcoin.

Although Governor Kathy Hochul has not yet signed the bill, if it becomes law, the state will meet its long-term climate goals.

"There is a balancing act involved here, very much a balancing act," the governor said in a statement.

"We have to balance protection of the environment, but also protect the opportunity for jobs that go to areas that don't see a lot of activity, and making sure that the energy that's consumed by these entities, is managed properly."

The first of its kind bill in the United States has received support from New York lawmakers that want to tap the brakes on the spread of cryptocurrency mining operations that burn fossil fuels.

According to the bill cryptocurrency mining operations "are an expanding industry in the State of New York" that "will greatly increase the amount of energy usage" in the state.

The bill would impose a moratorium on air permit issuance and renewal for an electric generating facility that utilises a carbon-based fuel to prevent cryptocurrency mining from increasing greenhouse gas emissions.

Complaining that the measure singled out the industry without addressing other fossil fuel use, John Olsen of The Blockchain Association said “The message from the bill and the embrace of that kind of policy is not a good one for an industry that really can go anywhere.”

“We’re very hopeful that the governor realises that the long-term benefits of embracing this industry and this technology far outweigh a potential pause on prospective future emissions,” he added.

Cryptocurrency mining, which requires specialised computers that consume huge amounts of energy, has an extremely adverse impact on the environment.

According to the US Energy Information Administration, bitcoin’s annual electricity consumption was comparable to Hong Kong’s in 2019.

(With inputs from agencies)

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