New York AG warns against crypto investments amid state push to ban mining

As New York pursues efforts to ban proof-of-work (PoW) crypto mining, the attorney general reminded investors of the risks associated with investing in crypto. 

In an investor alert published Thursday, New York Attorney General Letitia James said that investors are “losing billions” in crypto. James highlighted that even digital assets that are well-known and are traded in reputable exchanges can crash. Because of this, the attorney general is convinced that crypto investments create “more pain than gain” for investors.

Apart from this, James urged New Yorkers to take extra caution when putting their money into crypto. Because of its volatility, the attorney general said that these investments may become a source of anxiety instead of a fortune.

The cryptocurrency market is extremely unpredictable. Just last month, the market reached record lows and investors lost hundreds of billions. New Yorkers should be cautious and think twice before putting their hard-earned money into this unstable market.

— NY AG James (@NewYorkStateAG) June 2, 2022

The published alert also highlighted several factors to discourage investors, which included the unpredictability of the market, difficulties in cashing out, high transaction costs and the instability of some stablecoins. The announcement also reminded investors that the many digital currencies are unregulated.

The alert came as the New York State Senate passed a bill banning PoW mining within the state. If the bill gets approved by Governor Kathy Hochul, new mining operations will be prohibited, and those with licenses to operate will not be able to renew their permits.

Related: US energy company opens crypto mining facility in Middle East to use stranded natural gas

Meanwhile, Kenya-based energy company KenGen called on Bitcoin (BTC) miners to purchase its excess renewable energy. According to an executive at the company, there is lots of space within the country and they are eager to welcome miners.

As the bear market continues, BTC mining revenue is also showing a downward trend. On May 24, the daily mining revenue recorded a new eleven-month low of $22.43 million. This is almost half of what was recorded at the start of May 1, which was $40.57 million.