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Bitcoin miners push to veto NY Senate’s moratorium

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New York Bitcoin miners are reacting to the adoption of a crypto moratorium measure that, if approved by the governor in the next 10 days, will bar new proof-of-work (PoW) mining facilities using fossil fuel electricity behind the meter from starting shop in the state for two years.

Current ones would likewise be prohibited from expanding their energy consumption under the proposal. The foundry stated,

“As a Rochester-based company committed to growing the city and state’s economy through job creation and economic stimulus, we believe this legislation limits jobs and innovation in New York for the foreseeable future.”

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Greenidge Generation, which has a 106-megawatt facility in Dresden, also issued a statement clarifying that even if the measure is signed into law, the company’s current operations in the state will not be affected.

Greenidge Generation stated that its pending air permit renewal application was filed on March 5, 2021, which has attracted a lot of attention from both environmentalists and crypto enthusiasts in the state. As a result, this bill would have no effect on Greenidge’s New York plant.

Assemblywoman Anna Kelles, the bill’s sponsor, has emphasized the bill’s limited scope, which has been tweaked from a prior form that died in the Assembly last year. In general, it would halt existing levels of carbon emissions in the state for bitcoin mining and only apply to a small number of fossil-fuel power plants. Kelles on the assembly floor said that the bill is not retroactive and that it is only specific to the power plants.

Bitcoin mining inherently bad for the environment?

Bitcoin uses a lot of electricity. That energy demand is increasing, and it now consumes as much energy annually as entire countries like Finland, Malaysia, or Sweden. While bitcoin is not the only industry that consumes as much energy as entire countries, for example, concrete consumes more energy than India, both industries produce pollution, including carbon emissions.

Furthermore, it’s feasible that bitcoin miners might provide direct advantages to the grid, and, if managed properly, could even result in decreased overall carbon emissions.

Bitcoin and other cryptocurrencies have a problem with energy and the environment. But, if done correctly, all of that energy may be channeled into something beneficial to the earth.

Bitcoiner Bruce Fenton declares candidacy for new Hampshire’s senate seat

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Bruce Fenton, the former executive director of the Bitcoin Foundation, has announced his candidacy for the Republican Senate nomination in New Hampshire. And he’ll kick off his campaign with a $5 million self-funding injection of his bitcoin wealth.

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Bruce Fenton

Fenton’s announcement on Wednesday backed up previous rumors that the long-time crypto supporter and self-described libertarian was considering a Senate bid.

Senator Maggie Hassan (D-NH) is unpopular with her people, which makes her seat vulnerable to a Republican candidate – and Fenton wants to enter the race. On Wednesday, Fenton told CoinDesk that his initial $5 million donations to the campaign would be a loan, but that he would “spend and raise whatever it takes.” Fenton further added,

“I think that the money system in politics is broken and ready for disruption so I think we can spend very effectively and get a lot more for our dollars.”

More senators are associating themselves with the crypto business as crypto becomes a major subject on Capitol Hill. Candidates who are viewed as crypto-friendly have gotten a lot of support from crypto fans, who are increasingly identifying as single-issue voters. Fenton is a relative late-comer to the race, which means he faces a tougher fight in the primary election, which is slated for Sept. 13.

Who is Bitcoiner Fenton?

Fenton has over 20 years of global finance experience. He has lived and worked all around the world, completing billions of dollars in transactions and collaborating with some of the world’s most powerful investors. Fenton began his career on Wall Street after serving in the US Navy, and since 2013, he has focused solely on Bitcoin and digital assets.

Fenton was the Bitcoin Foundation’s Executive Director, the host of the well-known Satoshi Roundtable event series, a successful angel investor, a promoter of open source software, and a self-described cypherpunk. He’ll be having Zoom, Clubhouse, and Twitter spaces chats on a regular basis, as well as driving across New Hampshire in an RV. Fenton says he’ll keep working on his Bitcoin and digital asset businesses, investments, and other projects.

US Financial Regulators Raise Concerns About Growing Stablecoin Dominance

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The cryptocurrency market has grown by an exponential rate over the past year with the pandemic forcing people to move towards quick, contactless payment methods. Even though the industry was growing in size pre-corona, the last 12 months have really opened up the eyes of the regulators to what cryptocurrencies can actually do.

One of the recent concerns raised by regulators was related to the burgeoning size of the stablecoin market, specifically cryptocurrencies such as Tether [USDT]. They claimed that the size of the market allowed several billions of dollars to be transacted without ever coming under the purview of the country’s financial watchdogs.

During a recent Senate Banking subcommittee, members discussed the various ways cryptocurrencies could hamper financial overwatch. Officials added that a majority of stablecoin holders were unaware of the fact that their funds do not come under the jurisdiction of the Federal Deposit Insurance Corporation. The FDIC is responsible for protecting the claims made during financial transactions in the United States. Josh Lipsky, the director of the Atlantic Council’s GeoEconomics Center stated:

The most immediate way that some stablecoins might come under attack is from enforcers, such as what happened with the New York attorney general, who could pursue issuers for lying to consumers. Stablecoin issuers could eventually work in tandem with international governments’ projects to issue their own digital currencies but that the U.S. and others will have to develop regulations to ensure consumers aren’t hurt.

The Senate Banking members are not the first to speak against stablecoins as the industry has also been attacked by government officials such as Senator Elizabeth Warren and Federal Governor Lael Brainard. These comments came in the wake of Tether’s growing dominance on the cryptocurrency charts, currently sitting pretty at number 3. The world’s largest stablecoins holds a market of roughly $63 billion with a daily trading volume of $58 billion. Tether’s growth also allowed it to surpass major cryptos like XRP and Bitcoin Cash on the charts.

Banking officials stacked on their arguments by reminding everyone of Tether’s trading ban a few years back. Tether General Counsel Stuart Hoegner assured everyone that Tether and all its resources were maintained at the highest levels of safety and security. Hoegner promised:

We continue to look for avenues of regulation globally and are pursuing regimes in several countries

While regulators are trying to bring stablecoins under their thumb, the US government has revealed tentative plans to create a state backed digital asset. A CBDC will be controlled by the state while using blockchain technology and all the core fundamentals of a stablecoin. Although the US is not the first country to initiate or even begin working on such plans, its statements may play a huge role in how the groundwork is laid out.