by Trying to burden legislators in New York Bitcoin MinersWith reference to excessive electricity use that acquires bills for ordinary citizens as the reason for a new account.
Democratic senator Liz Krueger and Assembly member Anna Kelles introduced a bill on Wednesday in an attempt to impose an excise duty on proof-of-work crypto-miners.
The proposed law, Senate Act S8518wants mining companies to pay – depending on how much energy they consume – to the energy -payability programs of New York, which offer critical help to households with a low to moderate income throughout the state.
“The bill ensures that the companies that deliver New Yorkers’ electricity rates pay their fair share, while offering direct exemption to families struggling with rising utility costs,” Senator Krueger said in a statement.
The statement added that research has shown that the arrival of cryptomining facilities “will increase electricity accounts throughout the state, with an estimated $ 79 million a year in costs for private individuals and $ 165 million for small companies.”
Senate Bill S8518 says that miners consume between 2.25 and 5 million kilowatt hours are charged with 2 cents per kWh. Operations that are used between five and 10 million kWh would pay 3 cents and miners who use 10 and 20 million kWh would be hit by 4 cents per kWh. Consumption above 20 million kWh would be confronted with a speed of 5 cents per kWh.
Mining activities using sustainable energy would be exempt from a tax, the bill said, in an attempt to be “innovation and sustainability within the digital assets sector”.
To process transactions on proof-of-work cryptocurrencies such as Bitcoin and Dogecoin, private companies usually run data centers full of expensive computers that use a lot of electricity. Crypto critics have often talked about how harmful digital coins can be for the environment.
Nevertheless, the industry of artificial intelligence and powerful computer uses more energy than bitcoin-mining. The new account did not mention AI data centers, but a press release acknowledged that the industry grew and used more electricity.
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Decrypt Delivered to the Senator Kroegerer office for further comments.
The state of New York has traditionally had more difficult rules on the crypto space, which means that a number of crypto startups move to other parts of the US in the past
