As regulators across the world work to adopt varying stances on crypto mining, the US state of New York and the East African country of Kenya offer two examples of how legislators can thwart or foster crypto innovation through their initiatives.
Citing the need to curb the state’s energy use, the New York Senate has passed a bill that introduces a moratorium on certain crypto mining operations with the use of proof-of-work (PoW) authentication methods to validate blockchain transactions. The two-year moratorium concerns any new PoW mining projects operated with the use of carbon-based fuel, including bitcoin (BTC) and other cryptoassets.
After it was passed by the Senate and the New York State Assembly, the lower chamber of the state’s legislature, the bill was delivered to New York’s governor. Unless the incumbent governor, Democrat Kathy Hochul, vetoes the bill, its provisions will go into force.
The bill states that the “continued and expanded operation of cryptocurrency mining operations running proof-of-work authentication methods to validate blockchain transactions will greatly increase the amount of energy usage in the state of New York, and impact compliance with the Climate Leadership and Community Protection Act.”
Meanwhile, Greenidge Generation Holdings, a vertically integrated crypto data center and power generation company, said that “should the legislation be signed into law, our fully permitted power generation and cryptocurrency data center in Dresden, NY will continue to operate without interruption.”
On the other hand, Kenya’s energy production company KenGen has adopted a different approach to crypto, declaring its plans to offer BTC mining companies the KenGen’s surplus geothermal power. This is designed to help industry players meet their energy needs, Quartz reports.
As Africa’s leading geothermal energy producer, Kenya has an installed capacity of 863 MW, the majority of which is ensured by KenGen. The state has an estimated geothermal potential of some 10,000 MW located along the Rift Valley circuit which could be used to foster green crypto mining by local industry players.
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(Updated at 13:09 UTC with a statement by the Blockchain Association. Updated at 13:39 UTC with a comment from Greenidge Generation Holdings.)