New York City Mayor Publicly Opposes PoW Mining Ban Legislation

On Monday, New York City Mayor Eric Adams spoke out against a bill that would be one step closer to banning bitcoin mining in New York state within the next two years.

The bill seeks to impose a two-year mining ban on proof-of-work (PoW) cryptocurrency miners that do not use 100 percent renewable energy. Meanwhile, New York state's environmental agency is investigating the environmental impact of mining. The bill passed the state legislature on June 3 and now awaits Gov. Kathy Hochul's signature to become law.

Adams told Crain's on Monday that he intends to ask the governor to veto the bill because it would cost the people of the state economically. Adams has been a supporter of the crypto industry after receiving his salary payment in Bitcoin (BTC) instead of cash.

He is now standing with miners against the bill, saying that barriers cannot continue to be placed on miners who want to support the New York state economy with "billions of dollars spent on cryptocurrencies":

“I will be asking the Governor to consider vetoing this bill because it will hinder the growth of cryptocurrency in Upstate New York.”

Supporters of the bill, such as the original sponsor, Rep. Anne Kelles, worry that miners using fossil fuel power plants could keep New York state from achieving an 85 percent reduction in all carbon emissions by 2050. New York State, which generates more than 50 percent of its electricity from renewable sources, has shut down aging fossil fuel power plants in order to achieve this goal.

Kelles told the New York Post on Monday that she found the mayor's support for miners surprising, and that he was essentially asking New York to "go back to the stone age of cryptocurrencies." But Mayor Adams had previously spoken out against the miners in February, The Washington Post reported.

According to data compiled by the Cambridge Bitcoin Electricity Consumption Index (CBECI) in December 2021, the state of New York is the fourth largest contributor to hash power in the United States.

Industry insiders told CNBC on June 3 that New York’s decision to shut down mining rigs could have a domino effect across the industry. However, Cointelegraph reported on Friday that GEM Mining CEO John Warren believes that miners will simply move to friendlier states with better incentives.

Globally, about 50 percent of the electricity used by bitcoin miners comes from sustainable sources, according to the Bitcoin Mining Council. Miners are trying to reduce their dependence on fossil fuels, which requires innovative technology. Mayor Adams proposes to give New York miners specific deadlines to cut emissions. "Give us a target, not a ban," he said.