Congressional lawmakers have asked two federal agencies to take action against bitcoin mining. In fact, they mentioned higher energy consumption.
Ban mining for environmental protection
The senators raised concerns about the increased energy consumption of crypto mining companies. In fact, the 7 largest miners consume enough electricity to power every home in the nation in Houston, Texas.
The problem is compounded by the fact that the carbon emissions challenge remains relevant. Each company with detailed plans to increase capacity, lawmakers said. 6 lawmakers, led by Senator Elizabeth Warren, implored Michael scoldAdministrator of the United States Environmental Protection Agency (EPA)and Jennifer GranholmSecretary of the Ministry of Energy, to work together to curb this booming industry.
On the other hand, the senators highlighted an increase in cryptocurrency activities in the country. In addition, the miners are making the United States their new mining hub. In this context, they wonder if the government crackdown that took place in China in 2021 is not the best solution to counteract these effects.
“Despite these negative impacts of cryptocurrency mining, state and federal regulators currently know little about the scope of the problem,” the letter to the agencies read.
Therefore, the two agencies are obliged to provide legislators with a written statement by August 15. This indicates your authority to collect data from mining companies.
To find out: Coinbase expands its European presence after receiving a license from the regulator in Italy.
A 2-year moratorium on mining pow In New York
Additionally, crypto mining activity has had a negative impact on energy prices in New York. This forces the city to introduce its first 18-month moratorium on crypto mining operations.
A recent Berkeley study noted that “demand for electricity from cryptocurrency mining operations in upstate New York has increased small business annual electricity bills by $165 million.”
Previously, Congress directed federal agencies to review the activities of mining companies. In April, Jared Huffman and 22 other members of Congress spoke to the EPA about their views. They also highlighted the adverse effects of crypto mining on the environment.
Bonus: The Central Bank of India is considering a ban on cryptocurrencies.