The Legislative Proposal
New York State Senator Liz Krueger has introduced a bill targeting the energy consumption of cryptocurrency mining companies. The legislation sets forth a tiered excise tax structure:
≤ 2.25M kWh/year → Exempt
2.26M – 5M kWh/year → $0.02 per kWh
5M – 10M kWh/year → $0.03 per kWh
10M – 20M kWh/year → $0.04 per kWh
> 20M kWh/year → $0.05 per kWh
This sliding scale directly targets large-scale industrial mining farms, while sparing small operators with minimal consumption. New York’s proposed energy tax represents another chapter in the tug-of-war between regulators and miners. While designed to reduce fossil fuel reliance, it could reshape the mining map, rewarding renewable adoption while driving out energy-intensive operations
