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New York mayor backs mining restrictions but maintains crypto hub goals – Mining Bitcoin News
New York City Mayor Eric Adams took a supportive, if somewhat veiled, stance on the partial ban on crypto mining imposed in the state. A law signed by fellow Democrats and New York Governor Kathy Hochul temporarily limits the minting of digital currencies using fossil fuels.
New York mayor and Bitcoin supporter Eric Adams to seek balance with environmental goals
Cryptocurrency proponent and New York City Mayor Eric Adams has spoken in a supportive tone about the state’s two-year moratorium on certain crypto mining operations that rely on carbon-based energy resources. The partial ban, which would prevent companies involved in mining operations (PoW) from expanding, renewing or obtaining new permits, will be enforced with a law signed by Governor Kathy Hochul on Tuesday.
Quoted by the New York Daily News, Adams insisted that he remains focused on establishing New York as a hub for crypto. At the same time, he emphasized that a balance can be found between this goal and efforts to reduce the costs to the environment in the state that are linked to certain forms of cryptocurrency mining.
PoW mining, as an energy-intensive method of validating blockchain transactions for cryptocurrencies such as bitcoin, has been specifically targeted by the New York mining ban. The restrictions will affect mining companies that do not use renewable energy to source the large amounts of electricity needed for their powerful computing equipment.
Adams, known as a vocal supporter of cryptocurrencies, indicated this week that he was undeterred by the recent collapse of FTX, which was one of the world’s largest digital asset exchanges before it filed for bankruptcy protection earlier in November amid severe liquidity problems. He insisted that “we have to embrace” the crypto and blockchain industry despite the low point.
In June, the mayor revealed his intention to ask political ally Hochul to veto the bill after it passed the state Assembly and Senate. “I shared my thoughts … That’s the way our government works,” Adams told the Daily News on Friday, pledging to work with lawmakers who support as well as those who have concerns about crypto. “I think we’re coming to a great meeting place,” he added.
A Bloomberg report revealed that the New York governor has delayed signing the law due to lobbying by the sector. In a legal filing, Kathy Hochul pledged to “ensure that New York continues to be the center of financial innovation while taking important steps to prioritize protecting the environment.”
Although Hochul argued that the new law could stimulate crypto development and the use of green power such as hydropower, New York has been seen as a tough jurisdiction to start a business working with crypto assets even before the adoption of the mining law.
Adams has sought to change that image, insisting that crypto is part of a broader financial frontier for the state to conquer, the report notes. “Now there are aspects of this bill that people didn’t agree with. I know Albany. Let’s go back. Let’s look at them,” he was quoted as saying, adding that New York City should be leading the way in this and other new technologies.
Do you think the New York government will consider the mining moratorium in the future? Share your thoughts on the topic in the comments section below.
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