The Chamber of Digital Commerce is unhappy with New York’s recently signed Bitcoin mining law.
Kathy Hochul, New York’s governor recently signed a law prohibiting certain Bitcoin mining operations that use carbon-based power sources. The move is part of efforts New York intends to address the environmental concerns of crypto mining by cracking down on mines that use electricity generated from power plants.
CNBC reported that New York-based Bitcoin mining companies would no longer be allowed to renew or expand their permits for the next two years unless they use 100% renewable energy. Hochul described the legislation as the first in the United States, adding that the decision would help New York mitigate its carbon footprint.
New York’s Bitcoin Mining Law
It is noteworthy that the New York cryptocurrency mining law passed the state’s assembly and senate in April and June, respectively. The legislation calls for a two-year ban on certain cryptocurrencies like Bitcoin that use the Proof-of-Work algorithm to validate transactions on the blockchain.
However, New York Mayor Eric Adams kicked against the decision to impose a temporary ban on Bitcoin mining in the state. Adams noted in June that banning Bitcoin mining could affect New York’s economy and its residents.
Chamber of Digital Commerce Opposes the Law
Commenting on the newly-signed Bitcoin mining law, industry insiders told CNBC that the legislation could set a bad precedent across the United States, a nation considered a major hub for the global crypto mining space.
According to data released in May by the Cambridge Center for Alternative Finance (CCAF), the United States accounts for 38% of cryptocurrency miners in the world.
The Chamber of Digital Commerce, an advocacy group that promotes cryptocurrency and blockchain, said in a statement:
“The approval will set a dangerous precedent in determining who may or may not use power in New York State.”
Perianne Boring, the founder of the Chamber of Digital Commerce, said the net effect of the legislation could weaken New York’s economy, as businesses could be forced to move to other states with friendly Bitcoin mining laws.
“[…] This decision will eliminate critical union jobs and further disenfranchise financial access to the many underbanked populations living in the Empire State,” Boring added.