Plattsburgh Considers Temporary Crypto Ban Amid Grid Capacity Concerns

Plattsburgh, New York, is considering a temporary ban on new cryptocurrency ventures while it revises its zoning rules to prevent overconsumption of electricity. The city's mayor, Wendell Hughes, says this short-term measure will allow the city to codify changes that protect its 105-megawatt allotment from being overwhelmed by high-energy facilities.

The city has long been a destination for bitcoin mining operators seeking cheap power, but Mayor Hughes emphasizes that these facilities do not push utility rates higher for residents. In fact, he says the city's low electric rates have made it attractive to operators seeking affordable energy.

This proposed ban is not new, Plattsburgh took similar action in 2018 and later revisited the issue in 2022 when debating a statewide mining moratorium bill in New York.