New York Environmental Committee Will Not Consider Bitcoin Mining Ban Bill
The Senate Environmental Conservation Committee is now debating the bill. Despite this, the committee has decided not to take up the bill during its final meeting of the current legislative session, according to a schedule issued early Friday morning.
In particular the Senate Bill S6486D:
“Establishes a moratorium on cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain transactions; provides that such operations shall be subject to a full generic environmental impact statement review.”
Many members of the cryptocurrency industry have expressed strong opposition to the legislation, believing that the moratorium – which is much narrower than an earlier version that sought to impose an outright ban on mining for three years – could be the start of a downward spiral that eventually leads to the outright prohibition of all cryptocurrency mining in New York.
Opposition to the Bitcoin mining bill
Indeed, on May 4, MicroStrategy CEO Michael Saylor said that the planned regulation of Bitcoin energy use in New York City is 'environmentally detrimental.'
He opined:
“The proposed regulation of Bitcoin energy use in New York is damaging to the environment, reputation & economy of NY and demonstrates that the law can be manipulated maliciously to harm a competitor. If this disturbs you, please let the NY Senate know.”
Whether or not it becomes law, the proposed prohibition is causing alarm among both the crypto community and politicians, as it sends a negative message to the crypto ecosystem. Opponents fear that the bill will drive firms out of the state, resulting in a loss of tax money and jobs.
A piece of legislation delivered to the committee has the option of being passed, rejected, or ignored by the committee.
The bill's passage before the entire Senate for a vote is significantly more difficult as a result of the committee's decision not to consider it; but, it is still possible.
