New York lawmakers introduced a bill that pauses new permits for fossil-fueled Bitcoin mining, mandates a full environmental review, and considers an energy use excise tax. The rules would affect miners, data center hosts, and funds that hold Bitcoin or its derivatives, setting a stricter framework for proof-of-work operations in the state.
The moratorium is designed as a two-year freeze tied to the state’s study and rulemaking, with findings due from the NYSDEC on 22 November 2023 and the pause lifting in November 2024 unless the legislature acts.
The bill halts approval of any fossil-powered mining project for two years and assigns the NYSDEC a comprehensive environmental review. The agency’s findings were due 22 November 2023, and the pause would lift in November 2024 unless extended or modified by lawmakers.
As defined in the text, the moratorium is a temporary block on new permits while the state studies effects and writes rules, and its reach includes miners alongside the data centers and financial actors that support them.
Scope of the moratorium and environmental rationale
Public health and energy data underpin the pause. A Harvard T.H. Chan School of Public Health study cited in the bill estimates that 1.9 million residents breathe an extra ≥0.1 μg/m³ of PM₂.₅ due to Bitcoin facilities. According to IEEE Spectrum, 34 mines consumed 32.3 TWh in the survey window—33% more than Los Angeles uses—and 84% of that electricity came from fossil plants. These figures fuel public anger and are presented as justification for the moratorium.
Assemblymember Anna Kelles proposes an excise tax on proof-of-work mining, with Senators including Liz Krueger backing the plan and pledging revenues for environmental cleanup and mitigation. The levy would raise operating costs, and supporters argue that the proceeds would fund environmental repairs as the state tightens rules around energy-intensive mining.
For traders and fund managers, the bill introduces home-state regulatory risk and the possibility of miner migration to looser jurisdictions. A shift in hash rate geography could tighten supply narratives and influence spot and derivatives prices, while industry groups warn the freeze and tax could “stifle innovation” and push rigs out of New York. That warning itself may boost volatility and swell open interest in BTC futures or options; with steady rule tightening likely to curb local capital inflows, high leverage and broken hedges could magnify short-term price swings.
The pause is set to end in November 2024, but lawmakers can extend it while debating tax rates and environmental duties. The next decision—extend, modify, or scrap the rules—will define the boundary for mining investment in New York and shape money flows into Bitcoin derivatives.
