This week, the New York State Assembly passed legislation imposing a two-year moratorium on Bitcoin mining powered by fossil fuels.
The bill prohibits fossil fuel permits for crypto-mining relying on the proof-of-work consensus algorithm. The consensus algorithm validates a cryptocurrency transaction by allowing people to compete to add new blocks. As virtual miners compete to be the first to solve the complex puzzles, the algorithm customarily increases each computer's electricity usage accordingly.
The bill still needs to go through a Senate vote, after which it will be delivered to New York governor Kathy Hochul to be signed into law or vetoed.
The bill also assigns the Department of Environmental Conservation with the task of formulating an environmental impact assessment report. The document would quantify the greenhouse gas emissions and electricity consumption of the cryptocurrency mines relying on the proof-of-work algorithms.
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The Blockchain Association has labeled the bill as an "anti-technology bill" which it has exhorted members of the public to oppose. The group called the results of Tuesday's vote "an unfortunate outcome, but we’re grateful to the champions who advocated for a rational, progressive, and innovative approach to crypto in New York."
The association claimed there was “greater opposition to the mining ban than proponents believed.” The group now plans to direct its energy toward opposing the legislation in the Senate.