Thousands of sinking hopes? – AssemblyNew York State passed the bill which should impose a 2-year moratorium on cryptocurrency mining. While the legislative process is taking its course, mining companies are sounding the alarm if such a law were to be applied.
Non-grata minors in New York: the alarming speeches
The New York State Senate is considering the bill to establish a 2 year moratorium on new mining projects. The ban would affect new installations powered by electricity generated by gas, coal or other non-renewable energy sources.
The Senate has yet to pass the bill. However, it is already causing worries that could motivate mining companies to set up in other states, to the detriment of the New York economy.
The CEO of Compass Mining, Whit Gibbsbelieves that most cryptocurrency mining companies keep their distance from New York, given the apparently negative attitude of the authorities against minors. As a reminder, Compass Mining is a platform for connecting miners and investors from all over the world.
After the state of New York, place in Texas?
As for the co-founder of the mining company Xive.io, Didar Bekbauovhe has noted to the CoinDesk media that he was more interested in the Texas. Indeed, state regulations are favorable to the development of the sector. Texas also offers a cheap electricity.
This bill, which only seems to target mining installations using electricity from non-renewable energies, does it really spare the green miners ?
These latter would be worried according to John Olsen, who holds the position of New York state lead for The Blockchain Association. They would wonder if they will be the next on the list.
He recalls that the original bill called for a moratorium on all mining operations. John Olsen further points out that “any type of moratorium in the law is problematic”. Such a provision could indeed be extended or prolonged.
Will these speeches by mining actors deter the State Senate from following the same path taken by the Assembly? The crypto community keep on mobilize in New York to try to convince lawmakers to back down. The lobbies are mobilizing at the State Capitol to block against this moratoriumwhich could set a damaging precedent for the sector.
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