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On Friday, a bill in New York that would impose a two-year moratorium on some types of proof-of-work crypto mining businesses was dealt a major setback.

The bill is in the Senate Environmental Conservation Committee, but the committee has decided not to discuss it during its final meeting of the session, according to a schedule issued early Friday morning.

Many in the crypto sector have expressed concern that the moratorium – which is far narrower than an earlier version that tried to impose an outright ban on mining for three years – could be the start of a slippery slope that leads to the prohibition of all crypto mining in New York.

However, both industry and lawmakers are concerned that the proposed ban, whether it becomes legislation or not, will send a negative signal to the crypto industry. They are concerned that the idea will drive businesses, jobs, and taxes out of the state.

"I think one of the greatest difficulties [with the bill] is that you have 'New York' and'moratorium' in the same line," John Olsen, the Blockchain Association's New York state head, said.

The bill cleared the Assembly last week, thanks to Assemblywoman Anna Kelles, a Democrat from upstate New York, who supported it. To be signed into law by Gov. Kathy Hochul, the Senate version of the plan, which is endorsed by state Sen. Kevin Parker, must also pass.

When a bill is referred to a committee, it might be passed as is or with amendments, rejected, or ignored by the committee. The bill has been ignored by the Environmental Conservation Committee, which is chaired by state Sen. Todd Kaminsky, a Democrat who has previously expressed his opposition to it.

While the committee's refusal to discuss the bill makes it considerably more difficult for it to reach the Senate floor for a vote, it is not impossible.

If Senate Leader Andrea Stewart-Cousins decides to put the bill before the Rules Committee before the end of the current parliamentary session on June 2, and it passes the committee, the bill could still be brought before the full Senate.

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