The US Conducts “Interrogation” Of Cryptocurrency Miners

Four members of the US House Energy and Commerce Committee expressed “serious worry” that proof-of-work mining could boost demand for fossil fuels.

Four members of the United States House of Representatives from the Energy and Commerce Committee have demanded answers from four prominent cryptocurrency mining companies over the potential environmental impacts of their energy consumption.

U.S. lawmakers Frank Pallone, Bobby Rush, Diana DeGette, and Paul Tonko requested information from Core Scientific, Marathon Digital Holdings, Riot Blockchain, and Stronghold Digital Mining in letters dated Wednesday, including the energy consumption of their mining facilities, the source of that energy, what percentage came from renewable energy sources, and how frequently the firms curtailed operations.

The four House committee members also inquired about the average cost per kilowatt hour that the corporations spent mining cryptocurrency at each of their individual plants.

The lawmakers in a letter to Riot CEO Jason Les said:

“Blockchain technology holds immense promise that may make our personal information more secure and economy more efficient. However, the energy consumption and hardware required to support PoW-based cryptocurrencies may, in some instances, produce severe externalities in the form of harmful emissions and excess electronic waste.”

The plea came after US President Joe Biden signed the Inflation Reduction Act into law on Tuesday, a package that many experts consider to be the most significant legislation in the fight against climate change. Incentives were placed in the measure to assist and expand green energy projects, such as clean mobility and “climate-smart” manufacturing:

“Given the existential threat posed by the climate crisis, we are deeply concerned about efforts like [proof-of-work mining] that increase demand for fossil fuels, with the potential to put new strain on our energy grid.”

Whether the topic is its environmental or economic impact, Bitcoin is still a hot topic for many in government, both in the United States and abroad. On April 23, senators in the United States issued a letter to EPA Administrator Michael Regan, urging him to investigate crypto mining companies that may be breaking environmental laws.

DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.

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