Plattsburgh's Crypto Mining Ban Could End Earlier Than Expected

Plattsburgh imposed an 18-month halt on new commercial cryptomining operations, but indicated it could end sooner if protections are put in place.

AccessTimeIconMar 19, 2018 at 6:01 a.m. UTC
Updated Aug 18, 2021 at 8:31 p.m. UTC

Presented By Icon

Election 2024 coverage presented by

Stand with crypto

The city of Plattsburgh, New York, has chosen to temporarily ban all new commercial cryptocurrency mining operations for the next 18 months – but local officials have suggested that the prohibition could end earlier.

Last Thursday, Plattsburgh's City Council adopted a local law prohibiting any new mining operations from setting up shop, effective immediately. The city intends to use this time to establish rules for commercial miners, with an eye toward protecting residents from having to pay for increased electricity costs.

  • Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
    13:18
    Bitcoin Mining in the U.S. Will Become 'a Lot More Decentralized': Core Scientific CEO
  • Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
    05:10
    Binance to Discontinue Its Nigerian Naira Services After Government Scrutiny
  • The first video of the year 2024
    04:07
    The first video of the year 2024
  • The last regression video of the year 3.67.0
    40:07
    The last regression video of the year 3.67.0
  • However, during a discussion of the then-proposed law on March 15, councilors indicated that the ban could be lifted much sooner, once protections are put in place.

    Councilor Rachelle Armstrong said the time period may be too long, and that she was concerned the ban would cost the city business amid the uncertainty.

    To that end, the council would have to establish rules for any companies hoping to launch crypto-mining facilities, and these rules would focus on who pays for the elevated electricity usage.

    Councilor Patrick McFarlin agreed that 18 months was too long a period of time, but added that immediate action was needed to "stop the bleeding."

    He remarked, according to a recording:

    "Our public doesn’t deserve 18 months, our public doesn’t deserve waiting even six months for us to get our act together and manage this, but something needs to be done right now and right now 18 months is what we've got. But the clearly the law says we as a council can act, and if we do act, the moratorium won’t last anywhere near 18 months."

    The bill began after Plattsburgh exceeded its monthly electricity allotment earlier this year, according to Gizmodo. As a result, every resident in the city saw increased power bills for the month of January. Two cryptocurrency mining facilities in the city are allegedly responsible for the spike in usage.

    , one resident said that the higher bills were an unfair burden, saying: "The electrical ratepayers should be compensated for this. We shouldn’t be taxed, we shouldn’t be burdened by this."

    Another argued that without the moratorium, companies would continue to try and set up shop in Plattsburgh, adding that they would "try to use our electricity … so we need some time to look into that."

    Plattsburgh council meeting image via YouTube

    Disclosure

    Please note that our privacy policy, terms of use, cookies, and do not sell my personal information have been updated.

    CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. CoinDesk has adopted a set of principles aimed at ensuring the integrity, editorial independence and freedom from bias of its publications. CoinDesk is part of the Bullish group, which owns and invests in digital asset businesses and digital assets. CoinDesk employees, including journalists, may receive Bullish group equity-based compensation. Bullish was incubated by technology investor Block.one.


    Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.