Eric Adams wants the city to become a cryptocurrency hub and is looking for a way to avoid imposing a mining ban by striking a balance between miners and regulators.
In response to New York Governor Kathy Hochul’s ban on mining coins based on the Proof-of-Work consensus algorithm for two years, New York Mayor Eric Adams announced the plan to veto the bill. He believes that reducing environmental costs fits logically fits into the city’s desire to become the cryptocurrency center of the country. At the same time, the moratorium on mining implies a ban on any new operations related to the mining of crypto coins and the refusal to renew licenses for existing mining operations. It will be possible to get around this ban by only using renewable energy sources.
“I will work with lawmakers, those who support the bill, and those who fear that the measures to turn New York into a crypto hub will affect the environment. I believe we will be able to find a joint solution,” Adams said on November 25. Eric shows his support for cryptocurrency initiatives even through his example: immediately after being elected mayor, he tweeted that he would receive his first three salaries in cryptocurrency.
The bill was likely approved and signed by the state’s regulators because America is the world leader in bitcoin mining. The United States generates 37.8% of the hash rate (number of hashes a computer can generate per second) for the entire Bitcoin network. This cannot but affect the environment and the level of electricity consumption.
However, it is not only the law banning mining, which stands in Adams way, but the rules governing cryptocurrencies in New York, which are significant in their severity.