New York partially banned cryptocurrency mining. Now environmentalists want more.

A first-in-the-nation partial ban on cryptocurrency mining in New York is sending ripple effects through the burgeoning industry and also emboldening environmentalists to push for similar measures across the nation.

Gov. Kathy Hochul’s November signing of a two-year moratorium on new fossil fuel-powered cryptocurrency mining projects is already said to be deterring some cryptocurrency businesses from investing in the state, and environmentalists are suggesting the measure could be a model for other states.

The Sierra Club and other environmental groups are pushing a bill to study the energy and environmental...