New York Governor Of The Bitcoin PoW Mining Moratorium, Mining Must Use Clean Energy

New York Governor Kathy Hochul signed a moratorium on proof of work (PoW) mining (photo: Twitter @GovKathyHochul)

JAKARTA - New York Governor Kathy Hochul signed a moratorium on proof of work (PoW) mining into law on November 22. This makes New York the first state in the United States to ban PoW crypto mining activities for two years.

The PoW mining moratorium will not only ban new mining operations but also reject the extension of permits for those already operating in the state. Any new PoW mining operation in the state can only operate if it uses 100% renewable energy.

The PoW mining bill was first passed by the state assembly in April earlier this year and was later approved by the State Senate last June. The bill was finally signed into law by governor Hochul due to pressure from lobbyists and to meet its carbon emissions targets.

"I will ensure that New York continues to be the center of financial innovation, as well as taking important steps to prioritize the protection of our environment," Hochul said.

PoW mining consensus is mostly used by Bitcoin miners and several other altcoins. It is considered one of the safest and most decentralized ways to authenticate transactions on blockchain. However, the practice has been undermined by controversy over its high energy consumption.

The United States is currently at the top of its highest Bitcoin mining hash rate, with 37.8% of Bitcoin network hash levels originating from the US. The two-year moratorium on PoW mining can prove expensive and even create domino effects for other states to follow the same path.

The Blockchain Chamber of Digital Commerce advocacy group called the false narrative in Twitter's post:

The state regulation that the exponential use of mining industry energy exceeds other industries is false openly. The Climate Leadership and Community Protection Act requires an 85% reduction in NY greenhouse gas emissions and achieves net zero emissions in all sectors by 2050.

According to the PoW mining agency, it is not new and has been denied many times, however, there have been significant lobbying attempts over the past year, especially from proof-of-stake (PoS) mining advocates. Greenpeace and Ripple co-founder Chris Larsen has campaigned for a change in the Bitcoin code.

Lawmakers, on the other hand, easily rule out existing research reports that most Bitcoin mining energy comes from renewable sources. Bitcoin mining board reports highlight that more than 60% of electricity consumption by BTC networks comes from clean source energy.

European crypto regulators have also proposed a similar PoW ban on their Legislative Markets in Crypto Assets (MiCA). However, proponents of banning operations with PoW-based digital assets cannot garner sufficient support, meaning that the MiCa law was passed without such a ban.