The bill will now go to the State Senate, which is controlled by Democrats.
This week, a potential regulatory breakthrough occurred: the environmental conservation committee of the New York State Assembly approved a version of a bill that had died last year; the bill would impose a two-year moratorium on the mining of proof-of-work cryptocurrency, notably Bitcoin, which is almost certainly the most mined crypto in New York State.
Moreover, the bill pertains only to permits for “an electric generating facility that utilizes a carbon-based fuel”; presumably, at least some New York crypto mining uses purely renewable energy and would be exempt.
Nonetheless, New York’s slice of the Bitcoin mining pie is very large.
The company argues that it creates high-paying jobs upstate and generates power for the local grid; it has the support of the local electrical workers’ union, but has drawn fire from many environmental groups, including Seneca Lake Guardian and Sierra Club.
Indeed, a white paper published this week by Columbia University’s Sabin Center for Climate Change Law concluded that Governor Hochul and the state’s Department for Environmental Conservation already have the legal authority to halt any new permits for crypto mining facilities.
However, they make no mention of Bitcoin mining, and with the climate law having kicked in, it’s not clear that Greenidge is complying.
It would appear that Greenidge’s crypto mining business is profitable, but not crazily so, even as Bitcoin prices soared at the end of 2021.