New York businesses have been actively opposing crypto mining activities as the businesses have concerns regarding the environmental impact of crypto mining. The Governor of New York, Kathy Hochul has been receiving requests from local businesses to deny permits for the conversion of very old fossil-fuel power plants in New York into crypto mining centers.
Various local businesses have put forth the request to the Governor of New York in a letter. Multiple local businesses and labor groups want the officials to have deeper research into the environmental impact of cryptocurrency mining of tokens based on Proof-of-Work.
New York businesses oppose the reopening of power plants
According to the letter, the reopening of the Greenidge Generating Station and the Fortistar North Tonawanda will destroy the government’s goal of reducing the emission of greenhouse gases.
Digital currencies require authentication to prevent fraudulent transactions. PoW is the method that has the most significant energy demands. In PoW authentication, complex mathematical wequations are assigned to each transaction, and miners compete to solve them.The letter said
These businesses have asked the administration to halt the requests of Title V Air Permits and initiate a full assessment of the environmental damage caused by crypto mining.
Crypto mining scene in the U.S.
After China’s recent crackdown on cryptocurrency mining, the United States of America has become the biggest mining center for cryptocurrencies.
Britain’s Cambridge Centre for Alternative Finance revealed in their report that over 35.4% of hash power comes from the U.S. Meanwhile, the SEC has yet to reveal any guidelines regarding cryptocurrencies. There are some who have been actively opposing the explosion of the crypto space.
On the other hand, New York and cryptocurrencies have a long history. Popular exchanges like Ledger, Gemini, and Paxos call the state their home. Ledger was actually the first crypto derivative exchange that got its approval from the U.S. Commodity Futures Trading Commission. Exchanges like Paxos have also moved to the state of New York due to regulation flexibility.