A Pennsylvania House Representative has decided to remove a proposed two-year ban on cryptocurrency mining from an energy regulation bill after facing pressure from Democratic Party leaders.
The original bill, called the Cryptocurrency Energy Conservation Act, was introduced in June to the state’s House Environmental Resources and Energy Committee. It included a moratorium that would have halted new and renewed permits for crypto mining operations.
On Monday, the committee approved a revised version of the bill without the mining ban, by a narrow 13-12 vote.
Committee chair Greg Vitali, who sponsored the bill, said he faced influence from labor unions aligned with House Democrats to remove the moratorium. He expressed concern that defying the unions could jeopardize the Democratic majority in Pennsylvania’s House.
Despite his disappointment over the removal of the crypto mining ban, Vitali said getting the overall bill passed without the ban was preferable to not enacting the legislation at all. The new version that was passed still mandates a study on the impacts of crypto mining in Pennsylvania and introduces new reporting regulations for mining operations, even though the outright prohibition Vitali originally proposed has been dropped.
The removal of the ban comes as crypto miners seek alternative energy sources to reduce costs. Some companies in Pennsylvania have acquired coal plants or proposed burning waste to power mining rigs, facing backlash from environmentalists.
Overall, the shift towards sustainable energy appears to be a growing trend for miners looking for long-term success. The new bill still aims to regulate the sector’s energy use through reporting requirements.
