Rich by Coin

The Assembly has advanced a proposal to tax crypto mining, a practice that consumes substantial electricity as miners race to solve complex mathematical problems to mint digital currencies and verify transactions. Proponents say the levy would reflect the costs crypto activity imposes on the grid and help plug gaps in the state budget. The move comes as New York lawmakers seek creative revenue ideas to fund a roughly $260 billion budget amid reduced federal aid.

Opponents contend crypto mining yields little public benefit and is dominated by a few operators; Pretlow noted there are essentially no employees. The proposal would apply the tax to miners using 2.5 million kilowatt-hours of electricity. Critics worry the measure could burden miners and impact power markets or grid pricing.