Saturday, 30 July 2022

Urgency builds around crypto’s regulatory clarity in the U.S.

Christy Goldsmith Romero Commissioner, Commodity Futures Trading Commission (CFTC)
Christy Goldsmith Romero, CFTC commissioner, at an Axios event in Washington, DC, Tuesday, June 14. Photo: Cheriss May/Axios.

Representatives from both the U.S. legislators and administration officials expressed urgency Tuesday around providing clarity to the digital asset or blockchain industry during Axios’ “Crypto and the Investing Space” event.

Why it matters: If the rules in an industry are fuzzy, the bad actors are fuzzy, too.

Driving the news: “I’d wave a magic wand tomorrow and start defining some of these things,” Rep. Darren Soto (D-Fla.) said Tuesday morning.

  • Similarly, Christy Goldsmith Romero, a newly appointed commissioner with the Commodity Futures Trading Commission (CFTC), said, “I am certainly of the opinion that I would like Congress to act.”

State of play: At the top level, entrepreneurs in the cryptocurrency industry and their billionaire backers have long complained that they don’t have any idea what is or isn’t against the rules in the U.S.

  • At the grassroots, many investors have done very well investing in cryptocurrency but many others have lost life changing amounts of money.

At both levels, people are calling for government leaders to catch up.

Zooming out: The big question facing governments right now is this: are the rules that already exist for investors adequate to the task of managing cryptocurrency markets? Or should lawmakers and regulators start fresh?

  • The answer so far: TBD.

What they’re saying: Soto, who co-chairs the Congressional Blockchain Caucus, said he would “start defining” terms relevant to the cryptocurrency industry.

  • He was speaking to his view that crypto tokens and coins could be “a commodity, a security, a currency — it could even be a future. Trying to fit it into a 20th century box didn’t work and isn’t working now,” he told Axios’ Hope King.
  • “This is an example where existing laws are just antiquated,” he said.

Soto appeared to express frustration at the pace of legislation, expressing regret that most of his colleagues want to get the administration’s take on these questions before writing new laws.

  • “Our job is to pass new laws to evolve to what society has,” he said.
  • Meanwhile, Soto described the light touch approach that he and his colleagues on the Blockchain Caucus would prefer.
  • “We want to make sure we have guard rails for the most blatant frauds you can see, like pump and dump,” he said, rather than going further and trying to protect people against market risk.

Soto declined to specifically endorse the recent legislation from Senators Lummis and Gillibrand, but he did note, “We definitely agree that the SEC jurisdiction should be narrowly defined.”

Yes, but: Goldsmith-Romero described the task of those working under existing legislative authority now — the agencies — as attempting to see what’s ahead. “I think we’re looking into the future and asking where we should build the road,” she said.

But they are doing so blind, she complained.

  • Victims and whistleblowers are the chief way agencies find out where to look for trouble in the crypto industry right now, she said.
  • “The CFTC doesn’t have any regulatory authority. We can’t look at books and records,” she said.
  • “We’ve got a pretty sizable market that’s essentially unregulated. Regulators have no window into it,” she went on.

Nevertheless, she said, the CFTC has taken something like 50 actions in the space and also enabled 11 crypto-focused products to trade in the markets it regulates, under its mandate to enable responsible innovation.

The bottom line: “If regulation fails to keep pace with technology, the most vulnerable people are going to be hurt,” Goldsmith-Romero said.

Watch the full event here.



source https://duchonsigns.wordpress.com/2022/07/30/urgency-builds-around-cryptos-regulatory-clarity-in-the-u-s/

Thursday, 28 July 2022

Why cryptocurrencies have gone from the next hot thing to a full-on meltdown

A Bitcoin ATM is seen at a subway station in Brooklyn Heights in New York City on June 13. Bitcoin and other cryptocurrencies have plunged in value in recent days.
A Bitcoin ATM is seen at a subway station in Brooklyn Heights in New York City on June 13. Bitcoin and other cryptocurrencies have plunged in value in recent days.Michael M. Santiago / Getty Images

The cryptocurrency world is in chaos.

Just months ago, crypto companies were advertising heavily during the Super Bowl after virtual currencies enjoyed a dizzying rally in 2021.

Today, Bitcoin and other cryptos are plunging, and companies such as Coinbase, which runs the largest crypto exchange in the U.S, are announcing layoffs.

“The crypto house is on fire, and everyone is just rushing to the exits because there is a complete loss of confidence in the space,” says Ed Moya, a senior markets strategist at financial firm Oanda.

Here’s what’s going on.

Why are cryptos falling so sharply?

Because they are being hit by the same factors impacting stocks and other assets.

Consumer prices are surging at the fastest annual pace in over four decades, and the Federal Reserve is hiking interest rates aggressively to bring down inflation.

On Thursday, the Fed raised rates by three-quarters of a percentage point and indicated it could raise them again by the same amount at its next meeting in July if needed to cool down prices.

Higher interest rates make borrowing costs more expensive for people and companies, and that’s raising concerns about an economic recession.

Stocks have fallen dramatically from records set in January, with the broad S&P 500 index entering a bear market this week (when an index falls 20% or more from its recent high).

Cryptocurrencies have hardly been immune. Since Bitcoin hit an all-time high in November, the value of the world’s most popular digital currency has fallen by about 70%, and its rivals are also suffering. Ether is down by around 70% this year, and so is Dogecoin.

Bitcoin’s backers have always claimed the digital currency would be an “inflation hedge,” but in fact, it hasn’t behaved that way.

As shares of tech companies have plummeted, so has Bitcoin’s value.

“What this episode, this crash in crypto prices, shows is that cryptocurrencies are by and large speculative financial assets that are subject to macroeconomic forces, such as changes in interest rates,” says Eswar Prasad, an economics professor at Cornell University.

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City on Thursday. Fears about the Fed's aggressive actions against inflation have raised concerns about the impact on the economy.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City on Thursday. Fears about the Fed’s aggressive actions against inflation have raised concerns about the impact on the economy.Spencer Platt / Getty Images

So what does this mean for cryptocurrency companies?

The sharp falls in cryptocurrencies are driving some companies into problems.

Celsius, which takes cryptocurrency deposits from individuals and lends them out, stopped withdrawals because it’s facing financial trouble. Binance, a cryptocurrency exchange, halted Bitcoin withdrawals for several hours on Monday.

The problems at Celsius are undermining confidence in the broader cryptocurrency space just weeks after the collapse of a stablecoin called TerraUSD.

Crypto companies are responding by re-evaluating their plans for the future.

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Coinbase, a cryptocurrency exchange platform, reduced its staff by almost a fifth.

In a memo to staff, the company’s CEO said Coinbase “grew too quickly.”

“We appear to be entering a recession,” Brian Armstrong wrote.

Some backers of cryptocurrencies still believe a “crypto winter” could lead to a “crypto spring.” In the past, deep downturns have led to strong rebounds.

But according to Moya, the analyst at Oanda, the economic landscape is different now, and so is crypto’s outlook.

In fact, with the Fed continuing to raise interest rates aggressively and with inflation still high, there is likely to be more pain ahead across all markets, including cryptocurrencies.

Fed Chair Jerome Powell speaks during a news conference at the Federal Reserve Building in Washington, D.C., on Wednesday. The central bank raised interest rates by three-quarters of a percentage point, its biggest hike since 1994.
Fed Chair Jerome Powell speaks during a news conference at the Federal Reserve Building in Washington, D.C., on Wednesday. The central bank raised interest rates by three-quarters of a percentage point, its biggest hike since 1994.Olivier Douliery / AFP via Getty Images

What dose this mean for those who got into cryptos?

It’s been a rude awakening for the millions of people who bought cryptocurrencies, especially if they got into the craze last year.

Prasad says 2021 was “the height of crypto mania.”

The total value of all the digital currencies in the world swelled to $3 trillion. Crypto companies inked sponsorship deals with professional sports teams, and Coinbase, Crypto.com, eToro, and FTX shelled out millions of dollars to buy ads during the Super Bowl.

Crypto.com hired actor Matt Damon as a spokesman, and an FTX ad featured the curmudgeonly comedian Larry David.

The message from these companies was that crypto represents the future of finance and it was best not to miss out.

“The technological razzle-dazzle of cryptocurrency swept in a lot of retail investors who didn’t realize the sort of risks they were taking on,” Prasad says.

Today, the total value of crypto market has been shaved to about $1 trillion. And if you bought Bitcoin on Feb. 14, the day after that Super Bowl ad bonanza, it is now worth about half of what you paid for it.

The exterior of Crypto.com Arena is seen in Los Angeles on Jan. 26. Many cryptocurrency companies hired celebrities to pitch their products and signed sponsorship deals.
The exterior of Crypto.com Arena is seen in Los Angeles on Jan. 26. Many cryptocurrency companies hired celebrities to pitch their products and signed sponsorship deals.Rich Fury / Getty Images

What will this mean for regulations on the sector?

The increase in amateur investors, combined with the growing complexity of some of the cryptocurrency products, are worrying regulators.

Crypto markets are still fairly new, and there’s a lack of clarity even about the most basic things, like who is in charge of overseeing the space.

Right now, both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) claim oversight of parts of the crypto market.

“If there is no guidance whatsoever, people will be taken advantage of, and we want to prevent that” says Cam Harvey, a finance professor at Duke University. “Right now, we have basically nothing.”

The SEC is stepping up enforcement actions against crypto companies and considering new rules. Meanwhile, in an executive order, President Biden asked government agencies to make policy recommendations.

And in Congress, Sen. Cynthia Lummis (R-WY) has teamed up with Sen. Kirsten Gillibrand (D-NY), on the first comprehensive crypto legislation. The bill would give more regulatory authority to the Commodity Futures Trading Commission.

Still, for now, many analysts don’t think the broader financial system is at risk. The total value of the cryptocurrency market is still less than the total market value of a big company like Apple.

But this recent downturn has raised some serious concerns.

Copyright 2022 NPR. To see more, visit https://www.npr.org.



source https://duchonsigns.wordpress.com/2022/07/28/why-cryptocurrencies-have-gone-from-the-next-hot-thing-to-a-full-on-meltdown/

Tuesday, 26 July 2022

What’s going on with cryptocurrency? Why have prices crashed?

The month of June has not been great for cryptocurrencies like Bitcoin, as prices have been plummeting. But what’s causing the decline?

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Author: Evan Koslof

Published: 9:20 PM EDT June 14, 2022

Updated: 9:20 PM EDT June 14, 2022

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WASHINGTON — Those who have invested in cryptocurrency have been watching their savings plummet in 2022, and the trend has continued in June. 

For example, as of Tuesday evening, prices had dropped below $23,000 per Bitcoin. One week earlier, this same coin would have been worth more than $31,000. In the past week, Bitcoin has dropped roughly 25 percent. 

The year-long trend is similarly perilous. In November 2021, Bitcoin reached a record high, reaching nearly $70,000. 

Other coins, like Ethereum, have similarly seen their price drop. As of Tuesday evening, the price was roughly $1,220 per coin. That’s down from its November 2021 high, when the price was over $4,800. 

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JUST IN: $1,000,000,000 has been liquidated from the #cryptocurrency market in the past 24 hours.— Watcher.Guru (@WatcherGuru) June 13, 2022

As prices drop, many on social media have been reflecting on their losses. Some are lamenting “the end” of cryptocurrency, while others are pushing patience, assuring that prices will recover. 

“A lot of people will quit crypto today,” wrote one user on Twitter. 

Amid crashing prices, multiple cryptocurrency platforms have added to the confusion, by partially halting trading. 

So, what’s going on with Cryptocurrency? To get a better picture, our team spoke with a trio of financial experts. 

Sources: 

  • James Angel, Associate Professor and Academic Director of FINRA Certified Regulatory and Compliance Professional Program at Georgetown University
  • Hilary J. Allen, Professor of Law at American University’s Washington College of Law
  • Robert J. Barbera, Lecturer and Director at the Center for Financial Economics at the Johns Hopkins University

Why Cryptocurrencies are so volatile? 

All three of our experts emphasized that these losses are historic, substantial, and across the board in the crypto space. 

“It’s falling through the floor is what’s happening,” said Allen. “Prices on all kinds of crypto assets are tanking.”

Our experts pointed out that cryptocurrencies are by their very nature volatile because the value is based solely on what investors believe others will pay for it. 

“The prices of cryptos have always been volatile,” said Angel. “They’ll always be volatile because it’s very difficult to figure out the fundamental value of any of these various crypto tokens.”https://bit.ly/3viWPZU

This volatility makes investments in cryptocurrencies highly speculative and risky, said Barbera.

“It can go to a billion or it can go to a penny,” he said. “And there’s nothing about that price that means anything.”

Why the recent drop? 

Our experts said that it’s difficult to single out one reason why the market is selling off Bitcoin at such a drastic level. However, they all are in agreement that the rising interest rates are a big factor. 

“The Federal Reserve is increasing interest rates,” said Allen. “Which is tightening the amount of money in the financial system. And so people are abandoning riskier investments in general.”

Barbera said that he believes these rising interest rates will push more investors away from risky assets like cryptocurrencies.

“You do spectacularly well when money’s easy and things are going up,” he said. “And it’s pretty breathtaking in the reverse.”

Angel pointed out that prices are dropping in the stock market as well, as market confidence has been on the decline. 

“The prices of all financial markets have been dropping,” he said. “And the actual markets have always been volatile. They’ll always be volatile because their values based on what people expect is going to happen in the future. And nobody really knows what’s going to happen in the future. So the crowd can change its mind in a heartbeat, and usually does.”

What’s happening with Celsius and Binance? 

Amid the major cryptocurrency sell-off, some announcements from crypto lenders and exchanges have added to the confusion for some investors. 

Celsius, a cryptocurrency lender, announced on Monday that they were “pausing all withdrawals, swaps, and transfers between accounts” due to “extreme market conditions.” 

The company said that this action was being taken to “stabilize liquidity and operations while we take steps to preserve and protect assets.” 

Angel explained what likely caused this action. 

“What they’re basically saying is there’s been a run on the bank,” he said. “We don’t have the ability to honor the withdrawals, and therefore we’re not going to let anybody withdraw.”

Binance, the major cryptocurrency exchange, also had to temporarily pause withdrawals of Bitcoin on Monday due to a “stuck transaction causing a backlog.” Binance reported that this problem was resolved just hours later. 



source https://duchonsigns.wordpress.com/2022/07/26/whats-going-on-with-cryptocurrency-why-have-prices-crashed/

Thursday, 21 July 2022

Bitcoin Fear and Greed Index Dumps to Lowest Levels Since the COVID-19 Crash

Extreme fear has dominated the bitcoin landscape for over the month and a metric is down to its lowest position in years.

Amid the ongoing massacre in the cryptocurrency market, the popular Bitcoin Fear and Greed Index has plummeted deep into an “extreme fear” state. In fact, the metric is at its lowest position since the COVID-19 crash.

Extreme Fear Becomes the New Norm

The crypto markets took a massive turn for the worse starting at the end of March. At that time, bitcoin was riding high, close to $50,000, and the community wondered if it will be able to breach that level and even head for a new ATH.

However, that was not the case, and BTC entered its longest negative streak. The cryptocurrency closed the next nine weekly candles in the red and lost over $20,000 in value in the meantime.

It remained around $30,000 for a while but started plummeting last Friday again. The weekend brought more pain, and so did the start of this week. As a result, bitcoin nosedived to just over $20,000 earlier today, which became its lowest price position since December 2020.

Somewhat expectedly, this predominantly bearish trend resulted in a massive shift in investors’ beliefs and overview of the market. This is best presented by the Bitcoin Fear and Greed Index – a metric determining the overall sentiments by gauging different sorts of data, such as volatility, surveys, social media comments, and more.

It displays the end results from 0 (extreme fear) to 100 (extreme greed). Ever since the start of May, the Index has been deep inside “extreme fear.” The past few days saw another decline in the metric, which now shows 7 – the lowest position since the COVID-19 pandemic.

Bitcoin Fear and Greed Index. Source: Alternative.me
Bitcoin Fear and Greed Index. Source: Alternative.me

Down to $13K or Bounce-Off?

Whenever such extreme price volatility hits the market, analysts rush to provide their predictions on what will transpire next. By basing his forecast on a double top that BTC formed recently, the veteran derivatives trader Peter Brandt said bitcoin is poised to drop even further, indicating a short-term bottom of just over $13,000.

In contrast, another popular analyst – Will Clemente – sees this crash as a buying opportunity since the dormancy flow metric dumped to its lowest point ever. It describes the average number of days that each spent coin had remained dormant before finally moving.

As the chart below shows, once the metric goes down, BTC tends to bounce off in the short- to mid-term.

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About The Author

Jordan Lyanchev
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Jordan got into crypto in 2016 by trading and investing. He began writing about blockchain technology in 2017. He has managed numerous crypto-related projects and is passionate about all things blockchain. Contact Jordan: LinkedIn



source https://duchonsigns.wordpress.com/2022/07/21/bitcoin-fear-and-greed-index-dumps-to-lowest-levels-since-the-covid-19-crash/

Tuesday, 19 July 2022

Crypto Market Starting to See Even Old-Timers ‘Panic Selling’

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Crypto Market Starting to See Even Old-Timers ‘Panic Selling’

  • Measure tracking profit realized has sunk to lowest in a year
  • Data signal some long-term holders exiting below cost: Acheson

Bitcoin Selloff Was Inevitable, Crypto Expert Edelman SaysUnmuteBitcoin Selloff Was Inevitable, Crypto Expert Edelman Says

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As the crypto market crumbled this year, short-term speculators were among the first to dump their holdings. Now mounting losses have even some of the most steadfast investors looking like they’re bailing out.

A measure called the spent output profit ratio, which tracks how much profit has been realized from market activity in digital currencies on a blockchain on any given day, has declined to its lowest level in a year, according to Glassnode data. 

The vanishing gains suggest long-term owners are coming under pressure, a potentially worrying sign for a market known for its hodlers — the staunch and stalwart base of backers who would ride out any slump no matter what. 

“The thought was not to worry, the long-term investors are holding strong,” Noelle Acheson, head of market insights at Genesis Global Trading, said in an interview. “Well, we’ve started to see the long-term holders sell as well. According to on-chain data, some of them seem to be panic selling, exiting at below cost.”

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The spent output profit ratio offers a clue on sentiment and profitability over a given time frame and reflects the degree of realized gains for all coins moved on the chain, according to Glassnode. It shows an average and doesn’t necessarily mean all long-term holders are selling, nor that all those offloading are doing so at a loss. But it’s another point of concern for a market that’s endured a number of setbacks, with few evident catalysts to help it reverse course. 

Digital assets have been selling off all year along with other risky holdings as global central banks have shifted to hiking interest rates to quell soaring inflation. Bitcoin is down roughly 50% this year, and Ether has slumped 70%. An index of 100 of the largest coins was down more than 60% this year through Friday. 

The latest strains for cryptocurrencies have emerged from the lending space, where high-profile companies like Celsius Network and Babel Finance have frozen withdrawals. Meanwhile, a tweet by Three Arrows Capital, a major crypto hedge fund, raised concern about possible financial troubles at the firm, adding to the sense of broadening distress. 

“I am so, so glad that that is being flushed out as we speak — that needed to break, that needed to be out of the system,” Anastasia Amoroso, chief investment strategist at iCapital, said on Bloomberg’s “What Goes Up” podcast about the speculative froth getting wrung out of the system. 

READ MORE:
Crypto Lender Babel Freezes Withdrawals as Industry Pain Spreads
Genesis Says Crypto Lending Still Strong, at Least for Now

Because crypto has such strong proponents backing it, market-watchers have been obsessed with figuring out who’s getting hurt and abandoning investments in this year’s bear market. 

Short-term retail holders who had bought over the past year and a half faced an early test as Bitcoin fell to the lowest levels since 2020. Then strategists at Glassnode said this month that the downturn had entered its “deepest and darkest” phase, with even long-term holders coming under duress.

Overall, the crypto market has shed more than $1 trillion in value this year. Some smaller coins have declined 90%.  

“The most stunning feature of this bear market in crypto is its monotonic relentlessness — there is no sneaky underlying bull narrative to catch the market short,” said Brent Donnelly, president of Spectra Markets. “What was once a massive flood of FOMO money trying to get in is now an equally raging torrent the other way.”



source https://duchonsigns.wordpress.com/2022/07/19/crypto-market-starting-to-see-even-old-timers-panic-selling/

Sunday, 17 July 2022

China COVID controls makes Apple supplier Pegatron “emphasise” expansion elsewhere

China’s recent lockdowns to control the spread of COVID-19 have made Apple Inc (AAPL.O) iPhone assembler Pegatron Corp (4938.TW) “emphasise” its expansion in other countries, a senior executive at the Taiwanese firm said on Wednesday.

In April, Taiwan-headquartered Pegatron suspended operations at its Shanghai and Kunshan plants in China due to strict COVID-19 protocols, impacting production and deliveries. China has since lifted those restrictions.

However, the company is still facing labour shortages, exacerbated by COVID restrictions in China, leading the company to “emphasise” its expansion plans elsewhere, President Liao Syh-jang told an annual shareholder meeting in Taipei.

“We faced COVID controls for two months. We couldn’t have assessed that in advance, so that makes me emphasise our expansions in Vietnam, India, Indonesia, and North America, to solve our labour shortage, the gap between peak and low seasons, and to increase the utilisation of our production capacity.”

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In recent years, Pegatron has sought to expand its footprint in Southeast Asia and North America.

Chairman T.H. Tung added that their customers had “different reasons” for setting up factories in Vietnam, India and Mexico.

“But one shared factor is the ability to reduce concentration in Shanghai, Suzhou, Chongqing,” Tung said, adding that recruiting staff in China has become increasingly difficult over the past seven to eight years.

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Tung said that with the COVID pandemic easing globally, China coming out of its lockdowns to control the coronavirus and the electronics industry’s peak season coming later in the year, the rest of 2022 should be much better for the company.

“Combining these factors, I expect the second half of the year to be better, or a lot better, than quarter two.”

Taiwanese firm Foxconn (2317.TW), the world’s largest contract electronics maker which also assembles iPhones, last month predicted more stable supply in the second half of 2022.



source https://duchonsigns.wordpress.com/2022/07/17/china-covid-controls-makes-apple-supplier-pegatron-emphasise-expansion-elsewhere/

Thursday, 14 July 2022

New York Legislature Passes Moratorium on Crypto Mining Operations

New York Legislature Passes Moratorium on Crypto Mining Operations

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Best Practices and Brand Exclusives: NFTs and Community Building in the Metaverse

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On June 2, 2022, the New York Legislature passed a bill, S6486D, that would place a two-year moratorium on certain new cryptocurrency mining operations at fossil fuel energy plants in New York. The bill would also limit circumstances in which mining operations currently operating at plants in New York would be able to renew the permits or registrations that allow them to operate. However, the bill would not immediately require existing mining operations to cease, and the bill will not become effective unless it is signed by New York Governor Kathy Hochul.

Behind-the-Meter, Proof-of-Work Mining
The bill would only apply to so-called “behind-the-meter” plants that power mining operations—those that supply electricity directly to an on-site user without going through the electric grid. This would cover, for example, cryptocurrency mining operations that acquire energy generation plants and operate those plants to power their mining operations.

The bill would also only apply to proof-of-work operations, which it defines as “a consensus algorithm in a blockchain network used to confirm and produce new blocks to the chain to validate a cryptocurrency transaction, where competitors complete new blocks and where the algorithm changes the complexity of the competition in a manner that is designed to and/or results in increased energy usage for each competitor when the complexity is increased.” Proof-of-work, together with proof-of-stake, are the two major consensus mechanisms used to verify cryptocurrency transactions. (Proof-of-work is the means by which Bitcoin is mined and. requires significant energy output.)

A Moratorium on New Facilities and Renewals
The bill would add a new section to the New York Environmental Conservation Law, which is administered by the New York Department of Environmental Conservation (DEC). DEC is responsible for New York’s air pollution control permit and registration program; facilities that generate air pollution must first obtain and then maintain a DEC permit or registration.

The bill would temporarily prohibit DEC from issuing new permits or registrations to fossil fuel-based electric generating facilities that supply behind-the-meter energy to cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain transactions. The bill would also prohibit DEC from renewing air permits or registrations for such facilities if the renewal application seeks to increase or would allow or result in an increase in the amount of electric energy consumed or utilized by the cryptocurrency mining operation.

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The bill would not immediately impact existing facilities, which could continue to operate. Existing facilities could also renew their permits if they do not seek to increase the energy consumed by the mining operation.

Making an (Environmental Impact) Statement
The bill would also require DEC to prepare an environmental impact statement on cryptocurrency mining operations that use proof-of-work authentication methods to validate blockchain transactions. The bill would require DEC to address a series of issues in the environmental impact statement, including the amount of energy consumed by mining operations, the impact of mining operations on greenhouse emissions, and potential social and economic costs and benefits of mining operations.

Once prepared, the environmental impact statement would be posted to DEC’s website and be subject to a 120-day public comment period. DEC would also be required to host a series of public hearings across New York. Following the comment period and public hearings, DEC would be required to issue a final generic environmental impact statement within one year of the effective date of the bill. Although this final statement would not have an enforceable legal effect, it could serve as the basis for additional legislation and policy proposals. Presumably, the bill’s requirement that DEC publish a final statement within one year of the bill’s effective date was designed to give policy makers an opportunity to act prior to expiration of the two-year moratorium.

Outlook
The bill would take effect immediately upon signature by Gov. Hochul. However, the governor must still sign the bill before it will become law and as of the date of this post the governor has not committed one way or the other on whether she will sign the bill. Indeed, although the legislature has passed this bill, the legislature has not delivered the bill to Gov. Hochul for her consideration, and the legislature has frequently waited several months to formally deliver bills to the governor for signature or veto. The ultimate fate of the bill therefore remains uncertain.

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source https://duchonsigns.wordpress.com/2022/07/14/new-york-legislature-passes-moratorium-on-crypto-mining-operations/

Urgency builds around crypto’s regulatory clarity in the U.S.

Christy Goldsmith Romero, CFTC commissioner, at an Axios event in Washington, DC, Tuesday, June 14. Photo: Cheriss May/Axios. Representat...