CD (Portland) — Environmentalists celebrated after Democratic New York Governor Kathy Hochul approved this week a two-year moratorium on permits for fossil fuel plants that power cryptocurrency mining operations.

While the cryptocurrency industry and its allies opposed the measure—the Digital Chamber of Commerce said it was “severely disappointed” with Hochul’s decision to sign the bill into law and thus set a “dangerous precedent” for energy rules—environmental campaigners heralded it as a model for other US states.

“This first-in-the-nation law should set the standard for every other state where crypto miners are coming in, extracting resources, and wreaking havoc,” said Liz Moran, New York policy advocate for Earthjustice.

Moran also noted that the law requires a study by the New York State Department of Environmental Conservation (DEC). “We’re very much looking forward to the DEC’s fact-finding review, which we’re confident will affirm what Earthjustice and the White House have already concluded: crypto mining is a major threat to climate security and needs to be closely regulated,” she said.

In September, Earthjustice and the Sierra Club released a joint report titled outlining how cryptocurrency mining is a significant contributor to the climate crisis.

That same month, the White House Office of Science and Technology Policy put out a fact sheet highlighting that “the rapid growth of crypto-assets could potentially hinder broader efforts to achieve US climate commitments to reach net-zero carbon pollution.”

Other environmental groups also hailed the governor’s approval of the ban.

The Divest NY coalition declared that “New York is once again leading the nation on climate.”

“We did it!!!” Anna Kelles, sponsor of the bill in the New York State Assembly, exulted in a series of tweets, “despite enormous pressure from the crypto industry to stop it.”

“This is a huge win for our planet and a sign that New York is not afraid to lead the nation in our climate policy,” Kelles continued. “I am just filled with so much hope for our planet.”

In a memorandum, Hochul pointed out that “the legislation would still allow the issuance of permits for eclectic energy facilities that use alternatives to carbon-based fuel, such as hydropower, which would permit growth and business development in this industry.”

The governor’s decision to endorse the bill came after she had been noncommittal during a debate leading up to her reelection earlier this month.

It also comes in the immediate wake of the dramatic fall of Sam Bankman-Fried and his FTX cryptocurrency exchange, apparently as the result of massive fraud.

Opinion in many quarters has been turning negative on cryptocurrency.

In an opinion piece for the Wall Street Journal, US Senator Elizabeth Warren of Massachusetts wrote that “FTX’s implosion should be a wake-up call.” She asserted that if the federal government does not adequately regulate the cryptocurrency industry, it will “take down the economy.”

Originally published at Common Dreams. Republished by cc by-sa 3.0. Minor edits for style and content.

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