On September 16, 2025, New York Governor Kathy Hochul approved a first-in-the-nation law placing a two-year moratorium on issuing new and renewed air permits for fossil fuel–powered facilities dedicated to proof-of-work cryptocurrency mining. The legislation requires the state’s Department of Environmental Conservation (DEC) to evaluate how crypto mining affects New York’s ability to meet climate goals.
Supporters of the law argue that the environmental impacts of proof-of-work mining, which consumes electricity comparable to the usage of entire metropolitan areas, necessitate regulatory intervention. The measure directs DEC to assess energy consumption, emissions, and potential greenhouse gas contributions from mining operations. Any pending permit applications must undergo a supplemental environmental impact review before approval.
Opponents, including crypto industry representatives, contend that the moratorium will hinder economic development and innovation. They argue that the law unfairly targets one sector by focusing solely on proof-of-work mining, while other energy-intensive industries face fewer restrictions. Crypto advocates have proposed carbon offset and renewable energy initiatives to mitigate environmental concerns without broad moratoriums.
Governor Hochul emphasized that New York should remain a center of financial and technological innovation while ensuring environmental stewardship. “This law strikes the right balance between fostering emerging industries and protecting our environment,” she said in a statement. Environmental groups praised the move as a critical step toward reducing the state’s carbon footprint.
The law takes effect within 60 days and requires crypto mining firms to suspend operations at facilities reliant on newly permitted fossil fuel plants. Companies with existing permits may seek alternative energy sources or adapt to renewable power to maintain compliance. The moratorium will expire upon completion of DEC’s environmental assessment or after two years, whichever comes first.
New York’s action reflects growing global scrutiny of crypto mining’s environmental toll. Several jurisdictions have introduced restrictions or bans on proof-of-work mining in response to climate change goals. The state’s approach may serve as a model for balancing technological advancement with environmental responsibilities.
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