Business

The difference between New York City and New York State, April 25 through May 2

Last week, New York dominated crypto media headlines in very different ways. In New York state, the local assembly voted in favor of the bill that would ban for two years all new mining operations that rely on consensus proof-of-work (PoW) mechanisms and use energy generated from fossil fuels.

A temporary moratorium, which could be extended after the state Department of Environment released its industry carbon footprint assessments, marks the first major legislative attack on environmental PoW mining in the United States. The push mobilized the community — after digital asset advocacy groups sounded the alarm on Twitter. Proponents of the ban then had to endure three hours of heated debate to narrowly pass the draft. There is hope for an even closer fight in the New York State Senate.

Meanwhile, New York Mayor Eric Adams set an example in support of innovation when he spoke out against his state’s BitLicense regime during an interview at the Crypto and Digital Assets Summit in London. A recently elected politician who claims to get his three paychecks in bitcoin (BTC), Adams called the license – the only one at the state level – a “high barrier” and urged lawmakers if not to think outside the box, then yes at least not destroying the box itself.

Another example of a sensible approach to regulation was New York State Senator Kevin Thomas, who introduced a bill to define, punish, and criminalize fraud, specifically targeting developers and projects that intend to deceive cryptocurrency investors. The change would impose carpet withdrawal fees on developers who sell “more than 10% of such tokens within five years from the date of the last sale of such tokens.”

A discussion that will stay here

While some believe that the New York state legislature is “dominated by radical and marginal elements” who are “unaware of a new and innovative financial and technology sector,” the proposed PoW moratorium law could actually be a first notable example of legislative change Present measures regarding the sustainability of crypto mining. Controversy over how power-hungry different consensus mechanisms are and whether it is renewable or fossil-fuel energy that powers mining operations has been building for some time at national and international levels. These struggles will definitely intensify in the coming months and years. At the end of the day, not everything is bad. Some experts say the Albany lawmaker’s efforts are a “prudent move” to push miners toward a green transition, even though it could initially have a chilling effect on their operations.

Regulatory Festival in Latin America

As a major South American jurisdiction, Brazil passed its first law regulating cryptocurrencies in a plenary session of the Senate. According to the draft, which has yet to be approved by the Chamber of Deputies, the executive branch will draft rules for crypto assets and either create a new regulator or crown the Securities and Exchange Commission or the Central Bank of Brazil as the primary regulator for the industry. Panama is already a step ahead as its own crypto law passes the third and final round of testing. Now it’s the President’s turn to give the green light to the law. The initiative’s main proponent, Congressman Gabriel Silva, believes the bill “will help Panama become a hub for innovation and technology in Latin America.” Meanwhile, Cuba is expected to start issuing licenses to virtual asset service providers starting May 16.

CFTC is gaining momentum

The United States Commodity Futures Trading Commission, one of the key powerhouses in the overcrowded US crypto regulatory system, appears to have picked up a few extra points in the race. A bipartisan group of lawmakers reinstated the Digital Commodity Exchange Act, which would bring cryptocurrency developers, traders, exchanges, and stablecoin providers under CFTC jurisdiction. Granted, the mandate would only extend to cryptocurrencies, which are considered commodities, while the US Securities and Exchange Commission would still have power over the securities offerings for digital assets. Well-received by the crypto community, the bill should first make it through the first hearing of the US House Agriculture Committee.