Crypto mining bill stalled after split vote in New Hampshire Senate

• Crypto mining bill delayed as New Hampshire Senate responds to public and environmental concerns.
• The bill limits local control while protecting miners’ rights and supporting blockchain innovation.
• Critics warn deregulation could increase energy demand, noise, and environmental risks.

New Hampshire lawmakers have delayed a final vote to control local authority over crypto mining. The Senate Commerce Committee voted 4-2 Thursday to send House Bill 639 to further study, according to a report by the New Hampshire Bulletin.  The decision was made following a public outcry that suddenly emerged regarding the implications of the bill as it relates to the environment and regulation.

Republican congressman Keith Ammon sponsored the bill, which aims to prevent local governments in communities from banning crypto mining operations. House Bill 639 would prevent municipalities from restricting the use of electricity, noise, or zoning for mining facilities. 

The bill also bans local or state taxes that target a digital asset or mining activities. The proponents argue that it supports technological freedom and invests into the blockchain industry.

If passed, such legislation would also establish a new special blockchain docket at the state’s superior court. This docket would deal with lawsuits relating to digital assets and cryptocurrencies. 

All of these cases would be presided over by a judge appointed by the governor. Lawmakers believe such an act would put New Hampshire’s legal system into the future, with the state becoming a hub for blockchain business.

Crypto Mining Sparks Noise and Energy Debate

However, the bill has faced strong opposition from residents alongside the environmental groups. Senator Tara Reardon of Concord said she got more emails regarding this bill than any other bill in her lifetime. Several citizens expressed concerns about energy consumption, community noise, and the potential negative environmental impact of large-scale crypto mining.

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Proof-of-work systems such as Bitcoin operate on a blockchain with high-powered computers that verify each blockchain transaction and secure the underlying data with the proof-of-work-based algorithm. The process requires huge quantities of energy and has been criticized by environmental advocates.

States Turn to Energy Taxes to Curb Mining Impact

However, based on recent data, more progress toward cleaner operations has become apparent. The MiCA Crypto Alliance report released in 2024 indicated that coal’s share in Bitcoin mining reduced from 63% in 2011 to 20% in 2024. Renewable energy deployment was almost 5.8% per year over the same period.

Despite deregulation, some U.S. states are even solving their energy issues through taxation. On Oct 2, in New York, Senator Liz Krueger introduced a tiered excise tax on electricity used for crypto mining. The tax would have exempted small operations and focused it on big energy users.

The proposal also exempts the electricity used by crypto miners consumptive of up to 2.25 million kilowatt-hours (kWh) per year, while miners using between 2.26 million and 5 million kWh would face a 2-cent tax per kWh consumed.

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