Kathy Hochul Signs Crypto Moratorium Bill Despite Veto by Eric Adams

Gov. Kathy Hochul has signed legislation curbing cryptocurrency mining at legacy fossil-fuel power plants, despite a high-profile push from Bitcoin-loving Mayor Eric Adams to get her to veto the legislation.

Environmentalists had been pushing for Hochul to impose a two-year moratorium on new permits for crypto mining at mothballed fossil-fuel power plants while continuing to seek to reduce the state’s greenhouse gas emissions by 85% by 2050 under a landmark 2019 climate law.

“I am signing this legislation to build on New York’s state-leading Climate Leadership and Community Protection Act, the nation’s most aggressive climate and clean energy law, while continuing our steadfast efforts to support economic development and job creation in upstate New York,” Hochul said upon signing the bill.

The move underscored Hizzoner’s limited influence over Hochul, which Adams supported for a full term ahead of the Nov. 8 election, five months after he asked her to vote against that of Rep. Anna Kelles (D-Ithaca) and state Sen. Kevin Parker-sponsored bill to veto (D-Flachbusch).

“I will ask the governor to veto the bill that will stand in the way of cryptocurrency upstate,” Adams told Crain’s New York Business in June. “If you look at the billions of dollars being spent on cryptocurrencies, New York leads the way. We cannot keep putting up barriers.”

Opponents of the bill had argued that a moratorium would stifle a growing industry in New York state after decades of economic stagnation – an argument undermined by falling cryptocurrency values ​​and the implosion of crypto exchange FTX in recent months.

Cryptocurrencies use a technology called blockchain to record transactions that require a lot of energy to process, with computers crushing the numbers that are paid for in small amounts of virtual coins through the so-called mining process.

Adams, who could not be reached for immediate comment on Tuesday, said Tuesday that despite the recent setbacks, he remains bullish on the future of cryptocurrencies.

“These industries will not go away because they hit rock bottom. This is an industry that we need to embrace, and I want to keep my focus on blockchain and other technologies,” he told reporters.

Additional reporting by Bernadette Hogan.