New York has become the first state in the US to temporary ban mining of cryptocurrencies based on the Proof-of-Work algorithm like bitcoin (: ) for two years.
Signed by New York Governor, Kathy Hochul, the legislation is the latest regulatory move to fight the environmental impact of the crypto market. The bill prohibits new permits for crypto-mining activities that are powered by fossil fuels.
Commenting on the controversial measure, Hochul said that the law is a "key step for New York as we work to address the global climate crisis."
The New York Senatethe bill in June this year. Those who support the legislation say they want to curb the state's carbon footprint by cracking down on crypto mining businesses.
Meanwhile, the Biden administrationon a new report that will examine how much crypto mining affects global climate and the power grid in the US. Although it is unclear if any policy actions to follow the report, the administration wants to assess all the areas that might be impacted by crypto mining, starting from noise pollution to the energy efficiency of using different mining algorithms.