According to reports on Nov. 25, New York City Mayor Eric Adams is still committed to making New York a centre for the cryptocurrency industry, but he thinks that objective can be linked with state-wide initiatives to reduce the environmental costs associated with crypto mining.
The remarks come in response to a new rule that New York Governor Kathy Hochul signed that forbids proof-of-work (PoW) mining operations for a period of two years in the state. A well-known supporter of cryptocurrency, the mayor declared in June that he would petition the governor to veto the bill.
Adams told The NY Daily News that after the bill was passed into law, the city will work with lawmakers to strike a balance between the growth of the cryptocurrency business and statutory requirements.
“I’m going to work with the lawmakers who support it and those who have reservations, and I think we’re going to find a fantastic spot to meet,” said one senator.
According to Cointelegraph, the PoW mining moratorium will not only forbid new mining operations but also the renewal of licences for companies that are already operating in the state. Any brand-new PoW mining business in the state is only permitted to run if it completely relies on renewable energy.
With 37.8% of the Bitcoin network’s hash rate coming from the United States, the country has the largest proportion of the Bitcoin mining hash rate globally. The two-year ban on PoW mining might be expensive and even cause other states to follow suit.
“We need to open our doors to all forms of technology. Also included in the entire technology we’re considering is crypto, according to Adams. Adams said, “How can we make wise decisions so that New York City and America are leaders in this new technology?
The politician declared on Twitter after winning office that he would accept his first three paychecks in cryptocurrencies and stated his desire to establish New York City as the “hub of the cryptocurrency sector.”
The laws governing cryptocurrency exchanges in New York are among the harshest in the country. The state unveiled the BitLicense regulatory framework in June 2015, which has come under fire for being anti-crypto. Organizations engaged in transferring, purchasing, selling, exchanging, or issuing cryptocurrency are subject to the BitLicense.