A bill that seeks to impose a two-year moratorium on certain types of proof-of-work crypto mining operations in New York took a major hit Friday.
The bill is in the Senate Environment Committee, but according to a schedule released early Friday morning, the committee decided not to take up the bill during its last session of the session.
The legislation has drawn the ire of many in the crypto industry, who fear that the moratorium - which in its current form is much narrower than an earlier version that sought a complete ban on mining for three years - could be the beginning of a slippery slope that ends with all crypto mining being banned in New York.
But both industry and lawmakers are concerned that the proposed moratorium, whether it becomes law or not, sends a bad signal to the crypto industry. They fear the proposal could drive the business, and the jobs and taxes associated with it, out of the state.
"I think one of the biggest problems [with the bill] is that you have 'New York' and 'moratorium' in the same sentence," said John Olsen, the New York state lead for the Blockchain Association.
The version of the bill sponsored by Assemblywoman Anna Kelles, a Democrat from New York state, passed last week. The Senate version of the bill, sponsored by Senator Kevin Parker, must also pass in order to be signed by Governor Kathy Hochul.
When a bill is referred to a committee, the committee can either pass the bill as is or with amendments, reject it, or ignore it. The Committee on Environmental Protection - chaired by Democratic Senator Todd Kaminsky, who had previously opposed the bill - ignored the bill.
While the committee's decision not to take up the bill makes it more difficult for the full Senate to vote on it, it does not make it impossible for the bill to pass.
If Senate President Andrea Stewart-Cousins decides to move the bill through the Rules Committee before the end of the current legislative session on June 2, and the bill is approved by the committee, it could still be considered before the full Senate.