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New York Enacts 2-Year Ban on Some Crypto-Mining Operations (nytimes.com) 20

New York became the first state to enact a temporary ban on new cryptocurrency mining permits at fossil fuel plants, a move aimed at addressing the environmental concerns over the energy-intensive activity. From a report: The legislation signed by Gov. Kathy Hochul on Tuesday was the latest setback in a bruising month for the cryptocurrency industry, which had lobbied fiercely against the bill but was unable to overcome a successful push by a coalition of left-leaning lawmakers and environmental activists. The legislation will impose a two-year moratorium on crypto-mining companies that are seeking new permits to retrofit some of the oldest and dirtiest fossil fuel plants in the state into digital mining operations. It also requires New York to study the industry's impact on the state's efforts to reduce its greenhouse gas emissions.

The move in New York comes months after some other states had adopted more friendly policies toward the industry, offering tax incentives in hopes of luring crypto-mining operations after China cracked down on the activity last year. But it also comes at a moment of intense turbulence, and a potential crossroads, for the cryptocurrency sector. Earlier this month, the crypto exchange known as FTX suffered a swift and public collapse that led to its declaration of bankruptcy. The fall of what had been a trusted player in the new market has led to broader questions about the future of the exchange, as well as possible criminal charges for its principal, Sam Bankman-Fried.

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New York Enacts 2-Year Ban on Some Crypto-Mining Operations

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  • There is the existing players who are trying to hang on but who in their right mind would expand right now? I suspect this was in the works and just took a long time to get through. Because right at the moment this doesn't do a whole lot
    • by Luckyo ( 1726890 ) on Wednesday November 23, 2022 @10:25AM (#63073792)

      Considering the speed at which legislation is known to move in New York, this was likely negotiated over many years. It just happens to be finally through the legislative at the time when it's no longer relevant.

      • That's the entire country. Here is South Dakota they're still chit-chatting about whether they should remove the law that permits anyone to start shooting if they see two or more natives together in public. Government moves at the speed of molasses in winter. It's the only thing that keeps them from doing more damage than they already do.

        • by Luckyo ( 1726890 )

          That funny moment when you're not sure if this is colonial era law, or modern woke law. Is it about shooting them because they're probably a scouting party probing for solitary settlers they can rape and murder, or because you need to perform a gun salute to the racially superior ubermesch?

          • Considering when it went into the books, very much the former. Some of the more backwoods areas of SoDak still have people afeerd of the injuns comin' ta get 'em. I really wish I was kidding. My relatives west of here talk about them like they've been doing raids on their homes their entire lives. Yet they've never actually met one anywhere other than going to the casino.

          • Comment removed based on user account deletion
            • by Luckyo ( 1726890 )

              Sure, and "Anti-racist" means "racist against European peoples and sometimes East Asian peoples".

    • This is just targeting one or a few companies. Basically over a decade ago there was a big push to go from coal to natural gas as the clean alternative in NYS. One company took them up and bought state-ran coal plants, renovated them and then tried to bring them online.

      Under pressure from the green movement, NYS then reneged on giving them a license to push that energy into the net since it would undercut the costs of solar and wind. So as a result the company then built a datacenter next to their power pla

      • by ranton ( 36917 )

        Now theyâ(TM)re doing this to kill the company completely. This is just a continuation of pay-to-play that some principled companies refused to engage in

        I'm not sure where this analysis comes from in an otherwise informative post. If what you say is true, then this has nothing to do with pay-to-play. Instead it is simply the government fighting a company trying to sidestep green energy initiatives by finding uses for coal power generation other than putting the power on the grid. Seems to be directly in line with their public policy platforms, not some nefarious way to extort businesses.

        • Itâ(TM)s natural gas power, not coal. They redesigned the state coal plants on the request of the state but refused to enrich the people in power and have seen regulatory pressure against them ever since. Partially because they won the contract by undercutting the corrupt NYSEG (now part of corrupt energy multi-national corporation Iberdrola)

  • I don't understand how this would be even remotely enforceable. Fundamentally nothing differentiates cryptocurrency "mining" from any other brute-forcing algorithm, and it's actually what mining is in the first place. Outlawing certain types of algorithms doesn't historically end well...
    • Re: (Score:3, Informative)

      by Narcocide ( 102829 )

      They'll know by the electricity consumption alone if your mining rig is big enough to matter. Same way they used to catch grow houses.

    • by jwhyche ( 6192 )

      It is just a new ban on mining permits. Nothing they can do about people that have them already or just decide not to get one in the first place.

      • by ranton ( 36917 )

        It is just a new ban on mining permits. Nothing they can do about people that have them already or just decide not to get one in the first place.

        Well, it depends on how long these permits are for. I couldn't find anything in the article about the average length of these permits, but it could effect new permits issued after old ones expire. I couldn't find details on New York State mining permit lengths with a quick Google search, but I found examples in other states and countries which need to be renewed every 1-2 years.

    • by bws111 ( 1216812 )

      They are not outlawing algorithms. You need a permit to operate a power plant, and they aren't issuing those for fossil-fuel plants that are used for mining operations.

  • The Right To Repair legislation passed by an overwhelming margin, but it's been sitting on the governor's desk for months now.

    Wow, I hate New York politics.

  • by Opportunist ( 166417 ) on Wednesday November 23, 2022 @12:30PM (#63074142)

    A 2 days ban on crypto stories would already be welcome.

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