on the crypto
It's a busy week for New York lawmakers, who have placed more emphasis on digital assets.
Amid growing government and regulatory scrutiny, New York lawmakers are trying to address the impact of Proof-of-Work mining on the environment and curb an increase in illicit activity.
Recent legislative moves could impact New York's hopes of becoming a digital hub.
One problem that New York City continues to face is the need for cryptocurrency companies to obtain a BitLicense. The issue became significant enough for New York City Mayor Eric Adams to raise the issue publicly.
New York Mayor Adams calls for an end to the BitLicense scheme
This week, New York Mayor Adams was a keynote speaker at the Financial Times Crypto and Digital Assets Summit.
On Wednesday, Mayor Adams discussed the BitLicensing regime, highlighting its impact on economic growth and innovation.
Mayor Adams reported that he added:
"It's about thinking not only out of the box, but in this case, we may have to destroy the box."
In March, FX Empire reported a hitch with NewYorkCoin (NYC). According to the report, cryptocurrency exchanges that procured a BitLicense did not list NYC, which prevents citizens from trading in NYC.
The report states that “New York's BitLicense regulatory regime is the most demanding in the United States. Digital currency businesses in New York currently need to apply for a BitLicense, which can take years to process. "
Powered by Stacks (STX), CityCoins is “a protocol that allows smart contracts on the Bitcoin network”. Miners can submit STX in the Stacks protocol. CityCoins miners receive 70% of all STX tokens stacked in NewYorkCoin. Miners can then mine the rewarded NYC to earn BTC rewards.
The requirement for a BitLicense has led to cryptocurrency-related businesses to relocate or settle elsewhere.
This isn't the first time Mayor Adams has shared his point of view on Bitcoin.
In February, Mayor Adams expressed his opposition to crypto mining in a hearing on the local government budget.
For Bitcoin (quotation BTC) and the broader cryptocurrency market, opposition to crypto mining has come despite Adams taking a salary in Bitcoin and supporting the introduction of NewYorkCoin (NYC).
Comments from Mayor Adams follow New York lawmakers as they introduce new cryptocurrency-related bills.
New York lawmakers' bills question the aspirations of the Digital Hub
This week, lawmakers unveiled two cryptocurrency-related bills.
On Wednesday, FX Empire reported on a new Proof-of-Work mining law, the Assembly's Law A7389C.
Currently awaiting the vote of the Senate, the law:
“Establishes a moratorium on cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain transactions; provides that such operations are subject to a complete generic revision of the environmental impact statement ".
The bill went on to say that, for a two-year period, the Department of Public Service will not approve a new application or issue a new permit for "An electricity generation plant that uses carbon-based fuel and that provides, in whole or in part, electricity behind the meter consumed or used by cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain transactions ".
Also, the Department of Public Service cannot approve an application for renewal of an existing permit during the two-year period.
The second bill
Senate Bill S8839 is about illegal activity and has yet to be discussed. New York lawmaker Kevin Thomas has introduced a bill to criminalize illicit activity in the digital assets space.
The draft law:
"It establishes the crimes of virtual token fraud, illegal carpet mining, private key fraud, and fraudulent failure to disclose interest in virtual tokens."
The proposed sanctions include:
"A civil fine of no more than five million dollars or imprisoned for no more than twenty years, or both, except when that person is a person other than a natural person, a fine of no more than twenty five million dollars."
In order for New York to not lose to states like Florida and other crypto-friendly states, lawmakers may need to take the mayor's comments into consideration.
