The Future of NY’s Crypto Industry is in Gov Hochul’s Hands

The future of cryptocurrency in New York is in the hands of Gov. Kathy Hochul after lawmakers passed two seemingly contradictory bills on Friday, June 3, 2022. This week we teamed up with local products. Foundry Digital to address this urgent issue and the potential impact on WNY.

The first bill, A.7389C / S. 6486D (Kelles / Parker) would impose a two-year ban on cryptocurrency mining operations that use working proof authentication methods to validate transactions and, most importantly, to secure the online investments of the 46 million Americans who use the network. The second bill, A.9275 / S.8343 (Vanel / Sanders) establishes the working group on cryptocurrencies and blockchains in New York State to study how New Yorkers can harness the growth of the industry for the advancement of New York York, including its environment and social. , and economic implications.

Kelles / Parker’s bill seeking a 24-month moratorium comes as a result of the controversy surrounding the Bitcoin Greenidge Generation mining facility, a natural gas plant near Lake Seneca in Dresden, New York that employs about 50 New Yorkers from the north of the state and operating below. his permission still attracts the wrath of some environmentalists. In April, a New York Supreme Court judge dismissed activists’ lawsuit against the plant for the fifth time, alleging lack of evidence and failure to present any evidence of harm by environmentalists.

There are fears that more facilities will follow suit, although the moratorium bills grandparents at Greenidge’s facilities, thus contradicting their original goal.

Contrary to what is claimed, many within the industry strongly support the environmental goals that New York State is advancing, including the transition to a greener economy. Although the state has established a deliberate process to ensure that these ecological changes can occur without adversely affecting the economy and the population, this bill skips deliberation and applies a forceful suspension in a particular sector without much research to back it up.

According to Block, Inc., which includes Square, Cash App, Afterpay, Spiral, TIDAL, and TBD, “There’s a misconception that as bitcoin transactions escalate, so will your power consumption. In fact, the bitcoin transaction volume can be independent of energy usage, meaning it can accommodate 100, 1,000, or 10,000 times more transactions with the same amount of energy.For example, Cash app users can send bitcoins to each other thousands of times and there is no impact on the energy consumption of bitcoin mining.

Many fear that if the two-year digital mining ban bill is enacted, the resulting effect would be detrimental to local businesses, the career opportunities of future entrepreneurs, and the ability of specific communities to save and store wealth. For example, the Harlem Bitcoin community has hundreds of members from many different backgrounds, most of whom live in New York City. They claim,

A recent University of Chicago survey reported that 44% of those who own cryptocurrency are people of color. In addition, 30% of African American investors own some type of cryptocurrency. This is important. Hinder bitcoin hinders us.

In response, technology industry leaders this week call for the advancement of the second approved bill A.9275 / S.8343 that would establish the New York State blockchain and cryptocurrency chain working group. The bill was sponsored by Assemblyman Clyde Vanel and co-sponsored by WNY Representative Crystal Peoples-Stokes Assembly Member and directly echoes the policies of the Biden Administration, California and Washington State in trying to study the promising sector of the cryptocurrency to determine its benefits and impacts.

If Governor Hochul were to sign as law, the task force would be made up of sixteen members, with a mix of state regulators, academics, environmentalists and industry participants. It is important to note that the working group must submit to the Governor, before December 15, 2024, a report on various issues related to the digital asset industry, including employment, tax revenue, transparency, and energy use. Assemblyman Clyde Vanel states:

The working group will help us report on key issues, including financial inclusion for underrepresented communities; business opportunities for women and minorities; employment and training throughout New York State, including upstate. It will include the use of technology to protect our data and our critical infrastructure … and ways to reduce the environmental impact of this early but crucial technology.

As we pursue a greener economy, we must also promote new technologies and industries that advance our state. The best way to achieve both goals is to participate first in a holistic review of problems and establish policies when the facts are known and established.

Although regulators and communities have expressed valid concerns about Bitcoin’s electricity consumption, the mining industry is a major contributor to jobs, even in economically neglected areas and actually consumes less energy than many comparable industries.

Market participants, service providers and industry working groups are actively working to make the industry greener and more transparent. In addition to the already very onerous and regressive set of state regulations (the “Bit License”).

While it is widely acknowledged that there are concerns around the cryptographic industry, the world is not shying away from trying to understand this emerging technology. In addition, if passed, the impact of Bill A.7389C / S. 6486D could be powerful and set a dangerous legal precedent for banning new industries in New York without proper research and investigation.

If you are interested in seeing that the New York State Block Chain and Cryptocurrency Study Working Group (A.9275 / S.8343) has the opportunity to study the impacts of the industry, including environmental and economic impacts, you can click here to send an email. or call Governor Hochul’s office.

Contact by phone:

1-518-474-8390 | Office hours: 9:00 am to 5:00 pm

Contact by mail:

The Honorable Kathy Hochul
Governor of the State of New York
New York State Capitol Building
Albany, NY 12224

The foundry was created to meet the institutional demand for better access to capital, efficiency and transparency in the mining industry and digital currency participation. As a Digital Currency Group company, Foundry leverages unparalleled institutional experience, capital, and market intelligence to provide U.S. bitcoin miners and global manufacturers with the resources they need to build, maintain, and protect decentralized networks. Foundry empowers miners with the tools they need to build tomorrow’s decentralized infrastructure. We are agnostic to the protocol and seek to support blockchain entrepreneurs who share our mission to advance the industry.

Main image: June 10, 2022 – Albany, NY – Gov. Kathy Hochul speaks during a media availability in the Red Room of the Albany State Capitol. (Mike Groll / Office of Governor Kathy Hochul)

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