Following an early morning vote in Albany on Friday, lawmakers in New York passed a bill that imposes a moratorium on new proof-of-work crypto mining operations in the state.

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This means that all new proof-of-work mining facilities that run on carbon-based fuel will face a two-year ban. However, existing mining firms or ones undergoing the permit renewal process would be allowed to continue operations.

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During this moratorium, the state will conduct a study on the environmental impact of proof-of-work mining along with any potential “social and economic costs and benefits.”

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Members of the Senate voted 36-27 in favour of the bill, which was previously passed by the state assembly in April. The bill will be sent to New York Governor Kathy Hochul.

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“There are an increasing number of cryptocurrency mining operations in New York that are mining cryptocurrencies that use proof-of-work consensus algorithm, such as Bitcoin and Ethereum,” the new bill states. “Some cryptocurrency mining companies purchased retired fossil fuel plants and began operating at a much higher rate than the plants did previously. Those companies are essentially operating as an electric generating facility that uses fossil fuels.”

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“We must determine whether the growth of proof-of-work authentication cryptocurrency mining companies that operate their own electric generating facilities and produce energy by burning fossil fuels is incompatible with our greenhouse gas emission targets established in law.”

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