New York Enacts 2-Year Ban on Some Crypto-Mining Operations

New York became the first state to enact a temporary ban on new cryptocurrency mining permits at fossil fuel plants, a move aimed at addressing the environmental concerns over the energy-intensive activity. From a report: The legislation signed by Gov. Kathy Hochul on Tuesday was the latest setback in a bruising month for the cryptocurrency industry, which had lobbied fiercely against the bill but was unable to overcome a successful push by a coalition of left-leaning lawmakers and environmental activists. The legislation will impose a two-year moratorium on crypto-mining companies that are seeking new permits to retrofit some of the oldest and dirtiest fossil fuel plants in the state into digital mining operations. It also requires New York to study the industry's impact on the state's efforts to reduce its greenhouse gas emissions. The move in New York comes months after some other states had adopted more friendly policies toward the industry, offering tax incentives in hopes of luring crypto-mining operations after China cracked down on the activity last year. But it also comes at a moment of intense turbulence, and a potential crossroads, for the cryptocurrency sector. Earlier this month, the crypto exchange known as FTX suffered a swift and public collapse that led to its declaration of bankruptcy. The fall of what had been a trusted player in the new market has led to broader questions about the future of the exchange, as well as possible criminal charges for its principal, Sam Bankman-Fried.

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