New York Mayor Supportive of Mining Restrictions but Maintains Crypto Hub Objective – New York City Mayor Eric Adams, a proponent of cryptocurrencies, has expressed support for the state’s two-year moratorium on crypto mining operations that utilize carbon-based energy resources. A law signed by Governor Kathy Hochul on Tuesday will implement the partial ban, which prohibits companies engaged in proof-of-work (PoW) mining from expanding, renewing, or acquiring new permits.
Adams insisted, as reported by the New York Daily News, that he remains committed to establishing New York as a crypto hub. In addition, he emphasized that a balance can be found between this objective and efforts to reduce the environmental costs associated with some forms of cryptocurrency extraction in the state.
New York’s mining ban specifically targets PoW mining as an energy-intensive method for validating blockchain transactions for cryptocurrencies like bitcoin. The restrictions will impact mining companies that do not use renewable energy to power their powerful computing equipment’s high electricity demands.
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Adams, a known proponent of cryptocurrencies, indicated this week that he was undeterred by the recent collapse of FTX, which was one of the world’s largest digital asset exchanges before filing for bankruptcy in early November due to severe liquidity issues. Despite its weaknesses, he insisted that “we must embrace” the cryptocurrency and blockchain industry.
After the state assembly and senate passed the bill, the mayor announced in June that he would ask political ally Hochul to veto it. “I shared my thoughts…That’s the way our government works,” Adams told the Daily News on Friday, vowing to work with the legislators who are in support as well as those who have concerns about crypto. “I believe we are going to come to a great meeting place,” he added.
According to a Bloomberg report, the New York governor has delayed signing the bill due to lobbying from the industry. In a legal filing, Kathy Hochul pledged to “ensure that New York continues to be the center of financial innovation, while also taking important steps to prioritize the protection of the environment.”
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Although Hochul argued that the new law could spur crypto development and the use of green power such as hydroelectric energy, New York was already regarded as a challenging jurisdiction for launching a crypto-assets-related business prior to the enactment of the mining law.
The report notes that Adams has attempted to alter this perception, insisting that crypto is part of a larger financial frontier for the state to conquer. “Now, there’s aspects of this bill that people don’t agree with. I know Albany. Let’s go back. Let’s look at them,” he was quoted as stating, adding that New York City should be a leader in this and other new technologies.
