due to the current regulatory scheme with Bitlicense. A ban on mining sends a clear message to crypto companies that they are unwelcome in the state.
for the industry and California aims to lead the way with an Executive Order that would reshape the state government in terms of utilizing blockchain technology and establishing the state as a crypto capital.
similar to other states that study the impact of blockchain technology and digital assets more holistically and collaborating with other states to implement best practices.
including traditional financial services, transportation, hospitality and many others. It creates unreasonable standards for an industry that is only just beginning to establish itself in New York and holds crypto mining to a different standard.
May 17, 2022
The Honorable Andrea Stewart-Cousins
NYS Senate Majority Leader
Capitol Building, Room 330
Albany, NY 12247
Dear Leader Stewart-Cousins:
New York’s economy has long stood as a symbol of America’s entrepreneurial spirit, because it has drawn the world’s great innovators, dreamers, and builders to forge the building blocks of tomorrow. Now, however, New York’s reputation as a haven for innovation is in jeopardy. If the New York State Legislature passes A7389C/S6486D, we would effectively shut the state’s doors to a generation of leaders in America’s nascent and growing crypto industry. We, the undersigned, represent a coalition of job creators and community leaders, and for the sake of all New Yorkers, we urge you to reject this bill.
As you know, A7389C/S6486D would establish a two-year moratorium on new and existing crypto mining operations that use proof-of-work consensus mechanisms to validate transactions on a blockchain unless they get all of their energy from renewable sources. Stewardship and preservation of the environment is a value that we share with you, and we believe that economic gains should never come at the expense of our community’s health. However, A7389C/S6486D would carry unintended consequences that would leave both our economy and the environment worse off.
The crypto industry is a multi-trillion dollar ecosystem that is rapidly becoming a central cog of our diversifying economy. As millions of people invest in crypto and blockchain technology powers more and more of our digital lives, thousands of new jobs will open up for people in our communities. This “two-year moratorium” is a de facto ban that discriminates against a specific industry by determining who can use fossil fuels and who can’t. No legislator has proposed sanctioning the NYSE or any of the Wall Street banks for their energy use, or lack of use of renewable energy. This misguided proposal sends a message that New York is closed for business to innovative technology, and it will have a chilling effect on growth in an industry that will shape the future of the world. It would be as if California mandated that software developers use only wind power, or if Michigan told auto manufacturers to operate exclusively on steam.
While all forms of finance depend on significant energy inputs, energy use in the crypto industry pales in comparison to the traditional finance sector and other legacy industries in the economy.. Additionally, the crypto industry is a green energy leader, with some estimates showing that the industry gets as much as 60% of energy from renewable sources. As we continue to invest in our green energy infrastructure, crypto’s green energy adoption will grow as well. There is certainly more work to be done in reducing crypto’s carbon footprint, but we should work together to find solutions that achieve this goal without turning off an entire industry.
If A7389C/S6486D passes, the crypto projects that will not be allowed to move forward won’t simply disappear. They will be forced to move their operations – and hundreds of good-paying jobs – to other states or countries. In the end, the crypto mining projects will continue to operate, but New Yorkers won’t be taking the paychecks and New York’s exceptional environmental standards won’t be enforced. If New York wants to be a leader on crypto and the environment, it must innovate alongside its corporate citizens and develop creative ways to support growth while protecting our natural surroundings.
Legislation that singles out the cryptocurrency industry for a moratorium on its progress will also have significant adverse effects on the Black and Latino communities in the state. Data shows that these communities are invested in crypto at higher rates than the national average, and have been some of the sector’s earliest and most dedicated adopters. It is important to note that not only do many younger Black and Latino investors view crypto as a path towards meaningful wealth generation, they are also software and hardware developers, as well as stakers and miners. In addition to the reasons outlined above, the fact that the potential impact of A7389C/S6486D on a new and growing industry like the crypto industry will also adversely impact communities with respect to equity and inclusion issues should be taken very seriously.
We urge you to join other leaders in our state, such as Mayor Eric Adams, U.S. Senators Schumer and Gillibrand, Representative Ritchie Torres and others, who want to make New York America’s crypto capital. This is a historic opportunity to become the nexus of our crypto future while also working together to combat climate change, but that future will slip through our fingers if this misguided moratorium passes.
Thank you for consideration and your leadership for New Yorkers.
Kristin Smith, Executive Director
Amanda Cavaleri, Board Chair
Bitcoin Today Coalition
Dan Swislow, Head of Policy & Government Relations, Americas
Heather Briccetti, President
Business Council of New York State
Perianne Boring, Founder and CEO
Chamber of Digital Commerce
Graham Jenkins, CEO Coinlist
Damien G. Scott, Deputy General Counsel
Mark Murphy, COO
Digital Currency Group
Tim Hoefer, President & CEO
Mike Colyer, CEO
Arianna Pretto-Sakmann, Chief Legal Officer
Craig Salm, Chief Legal Officer
Addie Jenne, Legislative Counsel
Jason Clark, Executive Director