An Unprecedented Crypto Sabbatical

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Despite being the smartest species to ever walk the earth, human beings have shown a clear incapability in regards to not making mistakes. This dynamic has, in fact, popped up on the surface quite a few times throughout our history, with each appearance practically forcing us to look for a defensive cover. We will, however, solve our conundrum in the most fitting way possible, and we’ll do so by bringing dedicated regulatory bodies into the fold. Having a well defined authority across every single area on the spectrum was a game-changer, as it instantly gave us a safety cushion against our many shortcomings. Now, the kind of utopia you would expect from such a development did arrive, but it dissipated into thin air before anyone could even realize. Talk about what led to the stated setback, the answer will notably keep technology at the heart of everything. You see, the moment technology got its layered nature to take over the scene, it allowed people an unprecedented chance to exploit others for their own benefit. In case this didn’t sound bad enough, the whole runner soon began to materialize on such a massive scale that it expectantly overwhelmed our governing forces and sent them back to the drawing board. After a lengthy spell in the wilderness, though, it seems like the regulatory contingent is finally ready to make a comeback. The same has turned more and more evident in recent times, and truth be told, a newly-approved legislation should do a lot to make that trend bigger and better moving forward.

New York Gov. Kathy Hochul has formally signed off on the legislation, which restricts bitcoin mining operations in the state for the next two years. As a result, unless a proof-of-work mining company uses 100% renewable energy, it will not be allowed to expand or renew permits, while new entrants will also not be allowed to come online. Apart from it, the order instructs New York’s Department of Environmental Conservation to come up with an environmental impact statement, which assesses proof of work’s statewide impact, a statement that can be later used to construct other policies in this area. To give you some context, the proof-of-mining is basically an operation where several computers compete to solve complex mathematical problems, and whoever does the job first, they land themselves the all-important piece of cryptocurrency. Considering the high participation cost, the stated operation has shown to keep blockchain decentralized and fraud-free, but as we know, it all comes at the expense of outrageous energy consumption.

Now, while the move is, of course, manufactured to help the state in achieving all those goals set by its nation-leading Climate Leadership and Community Protection Act, it has generated serious fear among people about the potential economic ramifications, with some even predicting a decline in other sectors as a ripple effect.

“This is a significant setback for the state and will stifle its future as a leader in technology and global financial services. More importantly, this decision will eliminate critical union jobs and further disenfranchise financial access to the many underbanked populations living in the Empire State,” said Perianne Boring of the Chamber of Digital Commerce.

When quizzed regarding these concerns, Hochul said:

“I recognize the importance of creating economic opportunity in communities that have been left behind. This is why I will continue to invest in economic development projects that create the jobs of the future…while also taking important steps to prioritize the protection of our environment,”

Even though it might seem like out of the left field, the legislation has been in the pipeline for some time now. It was approved by the state senate back in June, but with various crypto lobbyists, including, New York mayor Eric Adams, pushing back, the whole thing will end up taking a bit before coming to fruition.

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