The Upper House of the New York Parliament has imposed a moratorium on bitcoin mining

The law adopted by the Assembly prohibits the creation of new mining farms operating at the expense of non-renewable carbon energy sources for 2 years. The motive for the adoption of the law was concern about environmental problems arising in connection with the mining of cryptocurrencies.

At the same time, companies that carried out their activities in this area before the adoption of the law will be allowed to continue working.

During the moratorium, the state authorities intend to conduct scientific research aimed at studying the impact of processes based on the Power-of-Work (PoW) algorithm on the environment. It is worth noting that this is the second such bill – last year the Senate Committee on Environmental Protection rejected a similar legislative initiative.

In turn, the chairman of the committee, Senator Todd Kaminsky, in May shared his concerns that the adoption of the law could lead to "detrimental economic consequences for New York if people perceive it as hostile to cryptocurrencies."

New York State has long been seen as an attractive location due to cheap hydroelectric power.

In addition, mining companies have also repurposed outdated coal-fired power plants in recent years. For example, Greenidge Generation has converted one of these facilities to run on natural gas.

The crypto industry, in turn, opposed the adoption of the law, as it could affect not only miners, but also the entire energy industry in New York.

So, the lobbyist of the Bitcoin Association, John Olsen, noted last month that the moratorium could be extended or turned into a complete ban over the next two years, which would alienate companies wishing to start their activities in New York state.