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 Sep 13, 2021 at 7:42 a.m. UTC

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.

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


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

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.


CoinDesk - Unknown
A New Chapter of Web3: Solana Unveils Smartphone ‘Saga’; Moody’s Downgrades Coinbase

The most valuable crypto stories for Friday, June 24, 2022.

CoinDesk - Unknown
CoinDesk - Unknown
How Are Institutions and Companies Investing in Crypto?

From putting bitcoin on their balance sheets to setting up shop in the metaverse, the ways brands and institutions are investing in cryptocurrencies continues to expand.

CoinDesk - Unknown
CoinDesk - Unknown
Consensus 2022: Hollywood, Colleges, Conferences vs. Crypto

The state of crypto and economics live from Consensus 2022 in Austin, Texas.

CoinDesk - Unknown
CoinDesk - Unknown
Bitcoin se estabiliza cerca de $21K; inversores esperan evitar otra caída el fin de semana

Los analistas se cuestionan si BTC podrá mantenerse por encima del umbral de $20.000 en un clima de desconfianza entre los inversores.

CoinDesk - Unknown