Market Analysis Report (03 Jun 2022)

The New York State has passed a bill targeting proof-of-work (PoW) cryptocurrency mining in a bid to address some of the environmental concerns surrounding digital assets. The bill would impose a two-year moratorium on any new PoW mining projects powered by carbon-based fuel.

The Senate voted 36-27 in favor of the bill, which allows existing mining firms or ones undergoing the permit renewal process to continue operations. Per the bill’s Democratic sponsor, Sen. Kevin Parker, there’s only one plant in operation that would not be impacted by the bill, while there is one pending application that may be put on hold.

During the moratorium, the state of New York will conduct a study on the environmental impact of PoW mining. While the bill has been passed by the Senate, New York Governor Kathy Hochul still needs to sign it before it becomes law.

Mining companies have in the past threatened to leave New York if the moratorium is passed, pointing to the ease of doing business in more mining-friendly states.