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Bitcoin mining ban New York is not a ban at all, says legislator

Bitcoin mining verbod New York is helemaal geen verbod, zegt wetgever

The US state of New York has recently been very negative about bitcoin (BTC), especially bitcoin mining. So negative, in fact, that last week there was again a vote for a ban on proof-of-work (PoW) mining. But according to the person who wrote the bill, it’s not actually a ban at all.

Misinformation about bitcoin mining ban?

That writes CNBCwho has spoken with lawmaker Anna Kelles. She has the recent three pages bill written that according to almost all media, it would be about a two-year ban on crypto mining in New York state. The Senate in the US state voted again on this last Friday. The law aims to lower the state’s carbon footprint by cracking down on crypto mining farms that meet very specific criteria. Existing mining farms that want to expand must obtain their energy from power plants that burn fossil fuels. Newcomers will not be accepted for the next two years.

Kelles emphasizes that it is in fact not a ban on mining at all. She sees it more as a “pause button.” She names the dissemination of what it believes to be incorrect information fear and emphasizes that the bill is read by many with emotion. That leads to misinterpretations.

She emphasizes that it is an attempt to limit inefficient mining activities by miners that meet certain criteria. The proposal in question is currently from the US government site achieved† Small-scale miners who have ‘five, ten and twenty miners in their basement’ are also not restricted. New York should be completely energy neutral by 2050.

Crypto miners complain about law

CNBC also spoke with Fred Thiel of mining company Marathon Digital. “Hard demands on how miners obtain energy is not welcoming to miners.” New York has a problem with grid congestion (crowded electricity), which the state is trying to solve, according to Thiel. What the electricity grid can handle is separate from what a miner actually consumes. The CEO thinks the message for other miners is to stay far away from New York. It also leaves the door open to a complete ban.

Kelles counters that oil and gas companies often use these kinds of arguments. They often argue ‘if the government does this, it hinders free trade and any regulation is bad’, according to the government official. Kelles clearly wants to ensure that miners also meet the climate targets. However, this situation could still lead to a tail.

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