U.S. Democrats Seek More Info On Federal Crypto Mining Data Collection

United States Democrats have actively followed most of cryptocurrency’s major events and activities. The lawmakers’ interests cut across several crypto aspects, such as regulations and controls, operations, functionalities, and energy usage.

Digital asset mining has raised a lot of controversies concerning its environmental threat through pollution and high energy consumption. In a new development, some Democrats, led by Elizabeth Warren, now demand more information from agencies on crypto energy usage in mining.

Lawmakers Wrote To DOE and EPA

Elizabeth Warren and seven other lawmakers recently wrote to Michael Regan, the United States Environmental Protection Agency Administrator, and Jennifer Granholm, Energy Secretary. In the letter, they requested details on the impact of digital asset mining and energy usage on the environment.

Senators Edward Markey, Sheldon Whitehouse, and Jeff Merkley wrote the letter, with participation from Representatives Rashida Tlaib, Jared Huffman, Richard Durbin, and Katie Porter. Senator Banking Committee member Elizabeth Warren led the Democrats in writing in which they requested that the agencies should respond before March 6.

The lawmakers admitted some responses they previously received from the official correspondence regarding data collection on energy consumption from digital asset mining. Further, they stated that their present demand is just a follow-up from the previous ones.

They want to know the details and the practical process of the agencies’ data collection and how they use the information they receive. So, the lawmakers are throwing a series of questions relevant to practical matters.

One of the issues raised by the Democrats was that the climate crisis is intensifying with the increasing crypto mining operations in the country. So, they see the need for mandatory and comprehensive data collection regarding digital asset activities.

Furthermore, they demanded that the Department of Energy (DOE) and Environment Protection Agency (EPA) should put more effort into the work to ensure they bridge the era of lack of information. Henceforth, it has become mandatory for the two agencies to retrieve timely information from crypto miners on emissions and energy usage in mining.

Additionally, the letter asked the Energy Department for details of its Energy Star program. Also, it raised the issue of technical assistance for communities interested in hosting crypto miners, which the department handles. 

One of the letter’s authors, Rep. Jared Huffman, posted the growing concerns about pollution through digital asset mining on Twitter. This prompted the lawmakers to urge the agencies to ensure that digital asset miners maintain transparency in their reports.

Crypto Mining And Environmental Impact

Digital asset mining is essential for protocols running with the Proof-of-Work (PoW) consensus mechanism. It allows miners to create new blocks on blockchains and helps maintain the network’s stability and security.

However, the mining process requires special computational equipment to solve cryptographic puzzles. Such machines consume lots of energy throughout the operational period. 

While miners seek to cut down their electricity costs, most resorted to using fossil fuels, bringing environmental pollution threats through high carbon emissions.

U.S. Democrats Seek More Info On Federal Crypto Mining Data Collection
Bitcoin trades downward with a 1% decline l BTCUSDT on Tradingview.com

The high energy consumption and environmental impact of crypto mining have been major concerns in most jurisdictions. In 2021, China cracked down on crypto mining and declared all digital asset transactions illegal.

However, with the increasing adoption of digital assets, most countries like the US seek to control emissions and energy usage from crypto mining instead of an outright ban.

Featured image from Pixabayl ELG21 chart from TradingView.com

#U.S #Democrats #Seek #Info #Federal #Crypto #Mining #Data #Collection


Related Posts

South Korea to examine crypto staking services following the Kraken case

As reported by a local publication on Feb. 15, Korean financial authorities are looking into the staking services market. However, as the unnamed official specified to the…

Elon Musk Hints At New Twitter CEO At End-2023, Causes FLOKI To Skyrocket 45%

Elon Musk announced in December of last year that he will step down as CEO of Twitter once a replacement is found, but will continue to operate…

Bitcoin eyeing ‘next big move’ which could see $19K retest — analyst

Bitcoin (BTC) is headed to either $28,000 or $19,000 and this week could decide all, fresh analysis says. In Twitter comments on Feb. 15, popular trader Skew…

Messari Analyst Reveals Why Polygon Is Set For Steady Growth

Through his tweet today, Messari analyst Tom Dunleavy singled out Polygon as a top-performing crypto asset and further described traits that set the cryptocurrency for further growth….

Sequoia Capital, Paradigm among VCs facing ‘tricky’ FTX investor lawsuit

Users of bankrupt crypto exchange FTX have reportedly taken aim at financiers who promoted the platform suggesting their efforts added an “air of legitimacy” to the now-defunct…

Sen. Warren vows reintroduction of AML bill that extends to DAOs and DeFi

A bi-partisan anti-money laundering (AML) bill that covers “decentralized entities” such as decentralized finance (DeFi) protocols and DAOs will soon be reintroduced to Congress, according to United…

Leave a Reply

Your email address will not be published. Required fields are marked *