Crypto

Eric Adams Asks Governor Hochul to Veto Crypto Mining Moratorium

The New York bill that would pause crypto mining has a new opposition: New York City Mayor Eric Adams, who previously raised issues with mining even as he embraced cryptocurrencies.


The bill in question passed the state legislature earlier this month, but now New York City Mayor Eric Adams intends to ask Governor Kathy Hochul to veto it, Crain’s New reports. York. She said that she wants to protect New York’s role as a leader in crypto, which she characterized as an infant industry threatened by lawmakers biased against it.

Crypto mining uses computational processes that keep the blockchain secure, but it also consumes a lot of energy and is responsible for significant greenhouse gas emissions. The bill in question would put a moratorium on new trial-of-work mining, not ban it outright. Otherwise, it would do nothing more to regulate the industry. Despite that, Adams said the state should focus its energy on “innovation” and “deadlines” in the industry.

“Tell crypto mining [firms] within the next five years, ‘We need to reduce energy costs,’” Adams told Crain’s. “Give us a target, not bans.”

Once again, the bill does not prohibit crypto mining. It places a two-year moratorium on the renewal or extension of permits for mines that draw electricity from fossil fuel power plants, as well as the issuance of permits for any new mine that meets that description. Proponents of the bill told Crain’s that there are currently 30 crypto mining facilities in use in the state, with 29 available for future permitting.

The fight over the bill comes as upstate New York is fast becoming a major hub for mining, including a controversial site on the shores of Seneca Lake that helped spark the standoff. In that case, a crypto operation revived a long-closed coal plant and retrofitted it to run on natural gas. While it does send a small amount of power to the network, it is primarily a vehicle for mining bitcoins. Activating more plants turned into bitcoin mines could jeopardize New York’s ability to meet its climate goals.

Adams received his first three paychecks in bitcoin and has been an enthusiastic supporter of the industry since taking office earlier this year. However, he told a joint session of state lawmakers in February that he supports “cryptocurrency, not crypto mining” in light of climate-related concerns. However, it is a distinction that he seems to have left behind with a bill on the governor’s desk.

“It is frankly embarrassing to see the mayor of the largest city in the country so enslaved by crypto in the midst of a climate crisis,” Yvonne Taylor, vice president of the Seneca Lake Guardian, said in a statement.

Hochul technically has 10 business days after the bill’s passage on June 3 to sign or veto it, but governors often postpone such decisions until the end of the year. In recent comments to reporters, she He suggested that the fate of the bill will be decided in a matter of months, not days.

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