The Bitcoin mining boom in New York state hit a roadblock as the State Senate passed a bill that will halt new permits for certain fossil fuel power plants to be used in Bitcoin mining.
The bill will face another test as it heads to Governor Kathy Hochul to sign or veto.
After China instituted new restrictions on bitcoin mining last year, many mining operations have set up shop in the US.
That fossil-fuel resurgence has sparked backlash from some residents and environmental advocates.
The bill that moved forward today establishes a two-year moratorium on any new permits for cryptocurrency mining operations that use a particularly energy-hungry approach to verify transactions on the blockchain.
If the Bitcoin network was its own nation, it would rank 32nd in the world in annual electricity use.
Greenidge Generating Station in New York’s Finger Lakes region has become a particular flashpoint for residents worried about cryptocurrency mining’s impact on the environment.
The moratorium on Bitcoin mining doesn’t apply to Greenidge, since it focuses on fossil fuel power plants submitting new applications for permits to use energy to mine proof-of-work based cryptocurrencies instead of sending that energy to the grid.