Crypto miners are currently in the crosshairs of US legislators.
A crypto-mining bill that pushes for transparency of gas emissions data is being pushed back in Congress, courtesy of US Senator Edward Markey and Rep. Jared Huffman.
The bill resumes ahead of a hearing on the environmental impact of crypto mining scheduled for Tuesday.
Crypto Mining Bill To Mandate Study on Emissions Impact
First proposed in December, the Crypto Assets Environmental Transparency Act would require the Environmental Protection Agency (EPA) to investigate the effects of large-scale crypto mining operations on global warming.
The study will cost $5 million, and the results will be made public within 18 months of the bill’s approval.
Image: The Guardian
Miners are also required to provide emissions data.
Markey named 16 public groups, including Greenpeace USA and the National Stop Crypto Coalition, as the bill’s main supporters.
Growing concern about the Impact of Crypto Mining
Crypto mining can have a negative impact on the environment, depending on the energy source used to power the mining operation.
The energy consumption of crypto mining is significant and comparable to that of a small country.
According to some estimates, the Bitcoin network alone uses it more energy than the entire country of Argentina.
A cryptocurrency mining facility. Image Cryptoglobal.
The majority of crypto mining is done using fossil fuels, such as coal and natural gas, which contribute to greenhouse gas emissions and climate change. This energy consumption also affects the local power grid, causing blackouts and other problems.
However, some crypto miners have started using renewable energy sources, such as solar and wind power, to reduce their carbon footprint. In addition, there are initiatives to develop more energy-efficient mining hardware and software to reduce energy consumption.
Consistent Critic From Crypto Miner
Several legislators, including Markey and Huffman, wrote to the EPA Administrator Michael Regan and Secretary of Energy Jennifer Granholm in February, asked the two departments to collaborate on a solution to the lack of data related to the use of cryptomining energy and ecological consequences.
Bitcoin (BTC) total market cap at $431 billion on the weekend chart | Chart: TradingView.com
Also, they all agreed to sign a letter addressed to the CEO of the Electric Reliability Council of Texas, requesting data on the state of Texas crypto miners and related energy consumption and environmental impact. The main author of these two letters is Senator Elizabeth Warren.
Senator Markey will chair a meeting of the Senate Air and Nuclear Security Subcommittee. At the meeting, participants will discuss the urgent need to act against “the increasing environmental impact of cryptomining.”
-Image shown is from Coinbase