New York has passed a law that will ban new Bitcoin BTC/USD mining companies from setting up bases in the state unless they use 100% renewable energy.
What Happened: The Empire State’s governor Kathy Hochul signed the law into effect on Tuesday banning certain Bitcoin mining operations in New York if they utilize carbon-based power sources, reported CNBC.
After the law came into effect, for a period of the next two years unless a proof-of-work mining company uses 100% renewable energy it will not be allowed to expand or renew permits and new entrants will also be barred, according to the report.
“It is the first of its kind in the country,” said Hochul, according to CNBC.
Why It Matters: The mining ban by New York has garnered mixed reactions on social media.
Economist Nouriel Roubini, a notable critic of digital currencies, hailed the ban on Twitter on Wednesday.
Well done Gov. Hochul! Brava!
New York Enacts 2-Year Ban on Some Crypto-Mining Operations
National cryptocurrency industry groups had lobbied Gov. Kathy Hochul to veto the environmental ban, fearful that other states could follow New York’s lead.
Nouriel Roubini (@Nouriel) November 23, 2022
Greenpeace USA, an environmental organization, called the ban “progress” in a tweet.
Washington-based Chamber of Digital Commerce founder Perianne Boring said, “To date, no other industry in NY has been sidelined for its energy usage. This is a dangerous precedent to set in determining who may or may not use power.”
To date, no other industry in NY has been sidelined for its energy usage. This is a dangerous precedent to set in determining who may or may not use power.https://t.co/u3T7D9UsXX
Perianne (@PerianneDC) November 23, 2022
The mining ban comes at a time when the cryptocurrency market and enthusiasts are grappling with the collapse of the Sam Bankman-Fried-founded companies FTX and Alameda Research.