US lawmakers introduce bill to account for potential environmental impact of crypto miners

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Three US lawmakers have introduced legislation that would require the Environmental Protection Agency (EPA) to report on the energy consumption and environmental impact of crypto miners.

In a Dec. 8 announcement, California Rep. Jared Huffman and Massachusetts Senator Ed Markey said they were sounding the alarm on the energy consumption of crypto mining in the United States, saying the Bitcoin (BTC) miners accounted for around 1.4% of the country’s electricity. consumption. Working with Sen. Jeff Merkley, lawmakers introduced the Crypto-Assets Environmental Transparency Act, which would require the EPA to report on mining activities consuming more than five megawatts.

Granting this industry impunity to inflict such environmental damage goes against many federal policies, and we need to understand all the harm this industry presents, Huffman said. My bill with Senator Markey will require cryptomining facilities to report their carbon dioxide emissions, as well as a detailed interagency study on the environmental impacts of cryptos to finally draw the curtain on this industry.

It’s time to draw the curtain on the harmful environmental impacts of cryptos.

Today @SenMarkey and I introduced legislation to get the transparency we need for oversight and accountability in this industry.https://t.co/6jzDrRyIq1

— Rep. Jared Huffman (@RepHuffman) December 8, 2022

Markey and Huffman cited concerns about climate change as part of their reasons for moving quickly to regulate the crypto industry. A draft of the bill included allegations of noise and water pollution caused by miners.

Scott Faber, Senior Vice President of Environmental Working Groups for Government Affairs, expressed support for the legislation, calling proof-of-work cryptocurrencies wasteful by design and saying that BTC and other tokens would incentivize miners to use more electricity:

The recently completed Ethereum merger and earlier code changes show that the Bitcoin community’s transformation is possible of how we’ve all adapted to new ways of powering our homes and cars and how we grow our food. . […] Every industry, including the financial sector, can reduce its electricity consumption and greenhouse gas emissions. Adding more power demand as proof of work that mining will eventually require sends us in the wrong direction.

Related: BTC Power Consumption Jumps 41% in 12 Months, Raising Regulatory Risks

Despite the transition of the Ethereum blockchain from proof-of-work to less energy-intensive proof-of-stake in 2022, many US lawmakers have continued to target cryptocurrencies for electricity consumption. In October, Massachusetts Senator Elizabeth Warren joined six other members of Congress in requesting information from the head of the Electric Reliability Council of Texas on the energy consumption and potential environmental impact of crypto miners.

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