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New York Gov. Kathy Hochul announced Tuesday that she had signed a law banning almost all new bitcoin mining operations in the state.
Proof of Work (PoW) is the most energy-intensive form of cryptocurrency mining, and is the method used by the largest cryptocurrency, bitcoin.
The legislation would still allow permits for power generation facilities that use alternatives to carbon fuels, such as hydropower, which would encourage growth and business development in the industry.
Upstate New York is a popular region for cryptocurrency miners due to its cheap hydroelectric power.
New York became the first US state to pass such a bill. Hochul said she is determined to ensure that New York City continues to be a center of financial innovation while prioritizing environmental protection.
In 2021, New York-based mining companies accounted for roughly a fifth of US bitcoin mining activity, but their share has declined as the bill moved through the state government.
The bill passed the state Senate in June, but lobbying efforts by industry representatives delayed its enactment.
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