Democratic Senators Concerned Over Energy Consumptions of Crypto Mining

Elizabeth Warren, Senator of Massachusetts has led a group of Democratic senators who have requested six crypto mining businesses, including Riot Blockchain, to respond to inquiries regarding the impact of their operations on the environment and the cost of electricity in the United States. Senators urge the companies to describe how much electricity they utilize, their scaling plans, and any agreements they have in place with local utility companies. Companies have until February 10th to respond. Lawmakers are concerned about the impact of a sharp surge in cryptocurrency mining in the United States on the environment and consumers. They quote a study from the University of California, Berkeley, published in 2021, which found out that crypto mining in upstate New York has increased the annual electricity bills by $165 million for small businesses and $79 million for households, ‘with little or no local economic impact.’ They also pointed to the fact that Bitcoin mining’s energy consumption increased between 2019 and 2021.  Senator Warren said, “The extraordinarily high energy usage and carbon emissions associated with Bitcoin mining could undermine our hard work to tackle the climate crisis – not to mention the harmful impacts crypto mining has on local environments and electricity prices, We need more information on the operations of these crypto mining companies to understand the full scope of the consequences for our environment and local communities.”  Although the group stops short of stating that these businesses may face regulatory action, the impact of Bitcoin on other parts of the economy is obviously something policymakers are considering. The House Energy and Commerce Committee convened a hearing on the topic of Cleaning up Cryptocurrency: The Energy Impacts of Blockchains on January 20th. In recent months, US lawmakers have taken a keener interest in cryptocurrencies.

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