(Bloomberg) — New York state lawmakers passed a bill that would trigger a two-year moratorium on new permits for certain power plants involved in Bitcoin mining.
The measure, which was approved by by a vote of 36 to 27 in the state Senate early Friday morning, now moves on to Governor Kathy Hochul for consideration. The state Assembly approved the bill last month.
Crypto industry groups as well as environmental conservationists have been closely monitoring the decision as lawmakers weigh the pros and cons of digital assets mining that use energy intensive proof-of-work authentication methods for cryptocurrencies like Bitcoin.
The bill calls for a two-year halt on new permits for miners that use carbon-based fuel and also, requires an environmental impact study with an eye on meeting climate goals established under a 2019 statute. Existing mining firms or ones currently undergoing the permit renewal process would be allowed to continue operations.
Crypto mining became a hot button issue after China and others banned the practice last year, driving much of that activity to North America.
Read more: Texas Bitcoin Miners Seek Cheap Power, Land and a Place to Stay
The rise of so-called miners, which use high-powered computers to process transactions and collect rewards in crypto, has drawn ire from climate advocates. Meanwhile, industry groups including Blockchain Association have criticized the moratorium, saying it could hamper business growth.
Read more: China Warns State Firms on Crypto Mining, Mulls Punitive Steps
More stories like this are available on bloomberg.com
©2022 Bloomberg L.P.
