Eric Adams, the mayor of New York City, feels that the two cryptocurrency bills prepared by the New York state legislature are unecessary and potentially damaging. As it stands, the laws, which would see crypto mining banned in the state of New York, have not yet been passed, and Mayor Adams plans to persuade Governor Kathy Hochul to reject the bills, citing negative economic consequences.
What the New Bills are All About
The crypto bills were passed by the State Assembly in April, and gained approval from the Senate just last week. However, the NY Mayor is unwilling to go forward with the new legislation, stating: “I am going to ask the Governor to consider vetoing the bill that is going to get in the way of cryptocurrency upstate. When you look at the billions of dollars that are spent on cryptocurrency – New York is the leader. We cannot continue to put barriers in place.”
The bills in question are ‘S.6486D‘ and ‘S.8343‘. The former, if passed, will amend the ‘Environmental Conservation Law‘ to outlaw any new application of carbon-based energy sources that cryptocurrency miners could look to utilize to continue via the carbon exhaustive Proof-of-Work model. The latter bill permits the formation of a task force that will examine the “effects of the widespread use of cryptocurrencies”. The task force would consist of 16 members who would be required to make their first report to the Governor by December 15th, 2024. Mayor Eric Adams is not the only one opposed to the bill, and is joined by the Electrical Workers Union.
How the New Crypto Bills Would Affect the Market
Governor Kathy Hochul has expressed her own doubts about the new crypto legislation, emphasizing that the right balance is needed. “We have to balance protection of the environment, but also protect the opportunity for jobs that go to areas that don’t see a lot of activity and making sure that the energy that’s consumed by these entities is managed properly”.
In conclusion, the new crypto bills are likely to have a negative economic impact on the crypto industry in New York, but would reduce greenhouse gas emissions. The moratorium is set to be in action for two years, but as it currently stands, we are yet to see which path the political heads of New York City will choose.