New York Assembly Passes Anti-Mining Bill

On April 26, 2022, the New York Assembly passed a bill that would place a two-year moratorium on certain cryptocurrency mining operations that use proof-of-work authentication (POW) methods to validate blockchain transactions (e.g., Bitcoin). The theory underlying the bill is that continuing expansion of "cryptocurrency mining operations running proof-of-work authentication methods to validate blockchain transactions will . . . impact compliance with the Climate Leadership and Community Protection Act," which requires New York to substantially reduce greenhouse gas emissions.

Limited Impact of Moratorium on Mining in New York

Some reports describe this bill as an outright ban on POW mining operations in New York. That is incorrect. The bill is far more limited in scope. First, the bill would prohibit the issuance of new air permits and the renewing of existing air permits. The bill would not affect presently operating POW mining operations whose air permits need