US Senators demand cryptominers disclose emissions and energy use
The latest step in the inevitable move towards crypto regulation
A group of Democratic lawmakers have urged the USA's Environmental Protection Agency (EPA) and the Department of Energy (DoE) to take action against cryptocurrency mining.
In an open letter sent to EPA administrator Michael Regan and DoE secretary Jennifer Granholm, six Democrats - Senators and Members of Congress - asked the authorities to require cryptominers to provide data on their carbon emissions and energy use.
They say that cryptocurrency mining is so unregulated in the USA that it is nearly impossible to determine the exact costs of associated energy and emissions.
The letter was signed by Senators Elizabeth Warren (D- Massachusetts), Ed Markey (D-Massachusetts), Sheldon Whitehouse (D-Rhode Island), and Jeff Merkley (D-Oregon), along with Representatives Rashida Tlaib (D- Michigan) and Jared Huffman (D-California).
Cryptomining is the process used to generate new cryptocurrency coins. Since it consumes a significant amount of energy, there is growing concern that it raises energy costs, as well as contributing to global warming.
The group says mining operations for Bitcoin are increasingly moving onshore, with the United States' share in global mining rising from 4% in August 2019 to nearly 38% in January 2022.
The representatives contacted seven of the biggest cryptomining firms in the US - Bitfury, Stronghold, Riot, Bit Deer, Bit Digital, Marathon, and Greenidge - to learn more about cryptominers' facilities, energy sources, and the effect of their activities on the environment.
The companies did not provide all of the information requested, but "the information they did provide reveals that these companies' mining operations are significant and growing, have a major impact on climate change, and that federal intervention is necessary."
The seven firms together have virtually enough capacity (1,045MW) to power all homes in Houston, Texas.
These specific firms also plan to raise their total mining capacity by approximately 230% within the next five years. This would represent "enough new capacity to power a city of over 1.9 million residences."
For reference, that is more than Los Angeles, which has 1.4 million households.
"Our investigation suggests that the overall U.S. cryptomining industry is likely to be problematic for energy and emissions."
The signatories note that energy costs for many small businesses and residents have increased significantly as a result of cryptomining facilities' energy usage.
Plattsburgh, New York, reportedly saw residential power bills going "up to $300 higher than usual" during the winter of 2018, which prompted the city to enact the country's first 18-month ban on new cryptomining operations.
Given these concerns, the Senators and Representatives have proposed a collaboration between the EPA and DoE. By working together, it is hoped that the agencies can address the lack of information around cryptomining's energy use and environmental impact, as well as ensuring and that they employ all available legal means to compel reporting of energy use and emissions.