Activists Target Crypto’s Climate Impact

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Illustration POLITICO by Claudine Hellmuth / Photos by iStock

A city-by-city, state-by-state movement against the energy-hungry demands of cryptocurrency mining is growing and winning some victories.

Frustrated by the lack of federal regulation, activists are targeting local laws and rules to curb a practice they say threatens the U.S. power grid and slows the adoption of low-carbon energy, writes Niina H. Farah.

Cryptocurrency mining requires an immense amount of energy. Computers mine bitcoin and some other types of digital currency by solving complex puzzles around the clock. The more computers running, the better the chance of making a profit.

Crypto miners say they can consume energy responsibly while improving the country’s electrical system, a tall order for an industry that uses more energy per year than Australia.

While concerns over crypto energy demands are far from new, they have taken on new urgency in the United States, which became a safe haven for crypto mining after China banned the practice in 2020. Over the next two years, the United States has grown from home at 3.5 percent of global bitcoin mining to 38 percent. When mining is done in areas where coal and natural gas still provide most of the electricity, the result could be more pollution that warms the planet.

Take action: Across the country, anti-cryptomining advocates are targeting local and state authorities to regulate or ban the practice.

New York has placed a moratorium on new crypto mines while state officials assess their effects on the environment. But that didn’t apply to an existing mining facility built on a former coal plant in the Finger Lakes region. Activists have therefore invoked the state’s climate law to argue that the facility, a combination bitcoin mining and natural gas plant, conflicts with the laws’ emissions reduction goals.

The state agreed, denying the facility’s request to renew its license. The company is appealing the decision while pledging to go carbon-free.

In Washington state, the House and Senate have approved a bill that would require operations such as crypto mining to meet the state’s ambitious clean power purchase requirements. The measure awaits the signature of Gov. Jay Inslees (D).

Other states go in the opposite direction. Both Missouri and Mississippi are working to pass right-to-mine laws, which encourage the development of the sector. Texas also hosted the industry.

Some members of Congress are pushing for federal action. Senator Ed Markey, a Democrat from Massachusetts, reintroduced legislation this year that could lay the groundwork for creating national efficiency standards for cryptocurrency mining.

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