Pennsylvania Revises Crypto Mining Ban Policy After Trade Union’s Criticism
In Brief
Pennsylvania state approves crypto energy conservation act, removing two-year cryptocurrency mining prohibition.
Amid pressure from trade labor unions, Pennsylvania’s House Environmental Resources and Energy Committee has made a pivotal decision to omit a two-year cryptocurrency mining ban initially proposed in their bill, which focuses on regulating the energy consumption of the crypto sector.
Earlier, this controversial legislation seemed stagnant with no significant progress since its submission on June 21. However, on October 16, the Committee managed to narrowly pass the Cryptocurrency Energy Conservation Act, with 13 votes in favor and 12 against.
Democratic Representative Greg Vitali, who chairs the Committee and also sponsored the bill, shed light on the behind-the-scenes political dynamics in an interview with The Pennsylvania Capital-Star.
He revealed that strong resistance came from building trade labor unions, notorious for their consistent disagreement with environmental policies. These unions, according to Vitali, have significant influence over the Democratic members, making them crucial stakeholders in policy decisions.
Pennsylvania’s Crypto Mining Landscape
Democratic Representative Vitali expressed his concerns about antagonizing these unions. He felt that going against them might jeopardize the Democratic majority in Pennsylvania’s House. His past experiences made him realize the precarious position strong environmental policies often find themselves in. Opting for a pragmatic approach, Vitali decided to revise the bill to ensure its passage, even if it meant removing the proposed two-year moratorium.
Had the moratorium stayed, it would have halted the issuance of new permits and the renewal of existing ones for crypto mining operations. Instead, the revised bill emphasizes conducting a thorough impact study of miner operations. Furthermore, it mandates rigorous reporting requirements.
Miners operating within the state will now have six months to provide detailed insights about their operations. This includes data about the total number of mining sites, their respective sizes, energy sources, emission metrics, and figures on energy and water usage.
For continuity, Pennsylvania-based crypto miners need to submit these reports annually. Any newcomers to Pennsylvania’s crypto mining scene must adhere to these reporting guidelines before initiating their operations.
In the backdrop of this legislative drama, some significant developments have occurred in Pennsylvania’s crypto mining industry. One notable player, Stronghold Digital Mining, has made strategic investments in Pennsylvania, the third-largest coal-producing state in the U.S. The company acquired two coal-burning power plants, intending to repurpose the waste from these plants to energize their Bitcoin mining rigs.
In July, the firm proposed an ambitious plan to utilize shredded tires to meet up to 15% of their energy requirements. However, this initiative met with stiff resistance from local environmental enthusiasts.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
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Nik is an accomplished analyst and writer at Metaverse Post, specializing in delivering cutting-edge insights into the fast-paced world of technology, with a particular emphasis on AI/ML, XR, VR, on-chain analytics, and blockchain development. His articles engage and inform a diverse audience, helping them stay ahead of the technological curve. Possessing a Master's degree in Economics and Management, Nik has a solid grasp of the nuances of the business world and its intersection with emergent technologies.
