The crypto market has gained more relevance and recognition in the global economic structure in the last few years. Many investors have been inclined to explore the potential and scope of the market. This has significantly helped in promoting the idea of crypto in the business as well as the working class.
However, with increasing popularity comes more complications. It was observed from the fact that many countries have moved to regulate the use of cryptocurrencies in their region. Recently, Chinese regulatory authorities initiated a crackdown on Bitcoin miners, leaving a negative footprint on the market. China is also trying to come up with its own digital currency to compete with the crypto market.
Environmental Review New York Bill
At the same time, a new bill was passed in New York State that wanted to place a three-year ban on crypto mining, citing environmental issues. Thus, this bill aimed to halt the operation of mining facilities in the State. The bill also proposed that the ban will only be lifted for facilities that ‘will not adversely affect’ the environment protocols in New York.
The legislation was however forwarded to the Senate’s environment committee for further approval. The bill was able to get approval from the State Senate but it was disapproved in the Assembly. The bill was opposed by union groups that eventually led to its dismission. The final judgment was passed on Thursday. The union groups argued that environmental goals are important. However, this bill would put limitations to a business entirely based upon energy usage, while targeting a specific technology.
The decision can put environmental goals at risk of being overseen but the mining facilities have been making promises to pursue a more sustainable mining approach. This development comes at a time when recently, the CEO of Tesla announced to stop accepting Bitcoin payments for its electric cars.
Elon Musk cited the environmental issues of Bitcoin mining to be the primary reason for this decision. Thus, there has been a lot of fuss about this issue worldwide. Especially, the US has been more critical of the use of cryptocurrencies. Therefore, it is yet to be seen how this latest decision helps the cause of normalizing the use of crypto. Also, if it has any positive impacts on the performance of the crypto market.