New York lawmakers recently passed a bill that will prohibit some types of bitcoin mining operations that are fueled by carbon-based power sources. This law will now be passed on to Governor Kathy Hochul, who has the ability to either pass the law or nullify it.

If Hochul chooses to pass the law, then it would cause New York to become the first state to prohibit a type of blockchain technology, revealed Perianne Boring, founder and president of the Chamber of Digital Commerce.

Overall, the legislation hopes to maintain a two-year moratorium on licenses or permits for cryptocurrency mining that utilize energy-sapping, referred to as "proof of work," for blockchain verifications. This proof of work type of approach primarily utilizes bitcoin and ethereum, the two most popular forms of cryptocurrency.

Proof of work entails that crypto users utilize technology in order to solve difficult or complicated puzzles, which in turn offers crypto tokens to the users. The problem with this procedure is that it saps too much energy, and New York has high standards in terms of its future vision for climate change. The state would ultimately like to decrease its greenhouse gas emissions by 85% by the year 2050 through the Climate Leadership and Community Protection Act.

"Proof-of-work mining has the potential to lead the global transition to more sustainable energy," Boring told CNBC's "Crypto World". "The bitcoin mining industry is actually leading in terms of compliance with that Act."

If this moratorium is passed by Hochul, then a variety of potential effects could be brought about. Many sources agree that this could possibly lead to a plethora of job opportunities or tax dollars going out of New York State.

"There are many labor unions who are against this bill because it could have dire economic consequences," Boring said in a statement. "Bitcoin mining operations are providing high-paying and high-grade, great jobs for local communities. One of our members, their average pay is $80,000 a year."

Boring added that, since New York has taken the lead in terms of state legislation, there is the possibility that the rest of the nation will adopt this same law. But however it turns out, the Biden administration is still looking for ways to prevent greenhouse gas emissions, in addition to bitcoin mining.