Town Supervisor Susan J. Bellor has highlighted the collective effort that has been instrumental in formulating the proposed regulations for cryptocurrency mining in Massena. She expressed her gratitude to former councilors Debra A. Willer and Francis J. Carvel, as well as town attorney Eric J. Gustafson, for their significant contributions. The urgency for a regulatory framework became evident when the town board extended a moratorium on future cryptocurrency mining operations for six months during their December meeting. With no public opposition, the board unanimously decided to extend the moratorium from December 31 to April 30.
Interestingly, while the moratorium is officially set to last until April 30, there is a possibility it could be lifted earlier if the new regulations are adopted. Gustafson has been diligently working on drafting these regulations for the board’s review and approval. The necessity for such regulations became apparent back in July 2018, when town officials initially discussed the potential moratorium. At that time, the town’s existing regulations did not address cryptocurrency mining operations, necessitating a pause to develop appropriate guidelines.
One of the primary concerns was the use of sea boxes and trailers for mining operations. This issue gained prominence when North Country Data Center, a subsidiary of Coinmint, set up its operation at the former Alcoa East plant. Despite the town’s code not addressing data centers and technology parks, the Massena Planning Board approved the site plan and special use permit for the operation based on the existing guidelines. This approval underscored the urgent need for updated regulations.
Since then, the town board has extended the moratorium multiple times while Gustafson continues to draft the local law. Recent public hearings have seen minimal participation, with only two written comments received during a January 2023 hearing to extend the moratorium until July 31, 2023. One of these comments came from a cryptocurrency operation requesting that current mining operations in the industrial zone be exempt from the moratorium, provided they remained within the existing industrial site’s footprint.
The regulatory landscape for cryptocurrency mining is not confined to Massena. In November 2022, Gov. Kathleen C. Hochul signed a two-year moratorium on cryptocurrency mining operations in New York State into law. This state-level moratorium applies to new permits for mining companies powered by fossil fuels and using proof-of-work authentication methods, a key component of the Bitcoin network. The Department of Environmental Conservation is also required to study the environmental impacts of the crypto industry.
New York’s moratorium is a pioneering move, making it the first state to impose such a ban. This state-level action underscores the importance of local governance, like Massena’s efforts, in addressing the unique challenges posed by cryptocurrency mining. As the Massena Town Board continues its review and prepares for the upcoming public hearing, it remains to be seen how these local regulations will align with state-level mandates and what impact they will have on the future of cryptocurrency mining in the region.
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