Residents call for action on hidden impacts of crypto mining: 'Coming at the expense'

A coalition of 28 environmental organizations is calling on New York state officials to take stronger action to rein in the growing energy impacts of cryptocurrency mining, according to Reinvent Albany and Earthjustice.

In a series of public comments, the organizations urged the New York Department of Environmental Conservation to finalize its statewide environmental review of proof-of-work mining and to work with lawmakers on policies that protect residents, reduce harmful carbon pollution, and ensure that the rapid expansion of digital industries does not come at the expense of public health or the environment.

What's happening?

In May, the DEC released a draft impact statement on mining operations that use proof-of-work authentication for public comment. Proof-of-work authentication is the process used by many cryptocurrencies, including bitcoin, to verify transactions through complex computer calculations that require massive amounts of electricity, making it a key contributor to the industry's energy footprint.

According to public comments, environmental groups state that the state agency's document fails to address how cryptomining shifts energy costs onto residents and small businesses.

The letter noted that cryptocurrency mining in New York consumes enough electricity to power about 971,000 homes each year and emphasized that "this large energy consumption is coming at the expense of regular New Yorkers and driving up energy costs."

The groups also argued that the draft omits details about subsidies and tax breaks that incentivize mining and overlooks how few long-term jobs and economic benefits these facilities bring to local communities.

Why is proof-of-work mining concerning?

Cryptocurrency operations consume vast amounts of energy and can pollute local environments, but countries like Brazil demonstrate how this technology can also be powered by renewables. 

Proof-of-work cryptocurrency mining uses enormous amounts of electricity and often relies on fossil fuel power plants when renewable energy is not available. If unchecked, the growth of facilities used to power cryptocurrency mining could worsen greenhouse gas pollution, strain the power grid, raise utility costs, stress water supplies, and slow progress toward state climate goals.

What's being done about the impact of cryptocurrency?

The public comment submitted to the New York State Department of Environmental Conservation by environmental groups called for several protections, including taxes on mining operations, the removal of subsidies and low electricity rates for miners, protective electricity tariffs, and stronger reporting requirements. New Yorkers can learn by example, comment on environmental policies, support organizations that work tirelessly to protect communities, and stay informed about local energy developments.

Together, regulators, lawmakers, advocates, and residents are working to ensure that cryptocurrency mining growth occurs with clear safeguards for New Yorkers and the planet.

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