Assemblymember Kelles Joins NY Senator Krueger in Announcing New Legislation to Impose a Cryptocurrency Mining Excise Tax

New York State Assemblymember Anna Kelles (SD-125) and State Senator Liz Krueger (SD-28) have announced they have introduced legislation which would implement an excise tax on proof-of-work cryptocurrency mining facilities which consume “massive amounts” of energy they say comes at the expense of New Yorkers.

Kelles says the bill would ensure companies who are operating cryptocurrency mining within the state pay their fair share, while also providing direct relief to families who are struggling from ongoing rising utility bills. 

“Cryptocurrency mining corporations reap enormous profits while externalizing the true costs of their operations onto our communities, our climate, and New York families’ utility bills. This bill ensures that the most energy-intensive facilities finally pay their fair share, rather than forcing ratepayers to subsidize pollution, grid expansion, and ecological damage” says Assemblymember Anna Kelles. “By directing revenues into energy affordability programs, we are turning a source of harm into a tool for relief, protecting households while upholding New York’s climate commitments.”

According to Kelles, proof-of-work cryptomining operations consume “extraordinary” amounts of electricity, which rival small cities, counties, or an entire industry’s combined use with little benefit to the community they’re a part of.  The new legislation corrects a fundamental imbalance by requiring companies to internalize the true costs of their operations, rather than shifting those burdens onto ratepayers and communities. It does this by establishing an excise tax on electricity used by digital asset mining operations that rely on proof-of-work validation, the most energy intensive form of cryptocurrency authentication.

Kelles says the proposed excise tax will provide durable, long-term police in preventing the externalization of costs while also supporting clean energy and ratepayer relief. The bill could raise nearly half a billion dollars annually for energy affordability programs through the Department of Public Service.