Democratic members of Congress in the US have written to the Environmental Protection Agency (EPA) and the Department of Energy (DOE) to share their findings on the energy consumption of cryptocurrency mining. They are urging the agencies to mandate that mining operations report their emissions and energy usage. Meanwhile, the Paraguayan Senate has approved a comprehensive bill to regulate cryptocurrency activities and allow miners to utilize surplus electricity generated within the country.
The group of six US lawmakers, led by Elizabeth Warren, a critic of cryptocurrencies, highlighted in their letter dated July 15 that crypto mining in the US has been on the rise since China banned it last year. Information provided by seven crypto mining firms in response to the legislators’ inquiry indicated a combined electricity capacity of 1,045 MW, equivalent to the energy consumption of all households in Houston, Texas, the country’s fourth-largest city.
According to the lawmakers, the energy consumption of crypto miners is pushing up energy prices for other consumers. They referenced government reports, academic studies, and news articles to support their claim and dismissed miners’ assertions of energy efficiency. The lawmakers stated, “These claims of using clean energy mask the reality that Bitcoin miners are consuming significant amounts of electricity that could be utilized for other critical purposes that align with our electrification and climate objectives.”
The letter pointed out the scarcity of information on emissions from crypto mining and raised concerns that the industry might pose energy and emissions challenges in the US. The lawmakers requested clarification from the EPA and DOE on their authority to gather data on the crypto mining sector and their strategies for doing so. They outlined several ways in which this data could be beneficial for public policy, including enhancing energy monitoring, informing policy decisions, conducting national mitigation analyses, shaping technology policies, and modeling national and regional grid loads and transitions.
Lawmakers have frequently engaged with the EPA on matters related to crypto mining, with varying stances on the issue. Environmentalists and the crypto industry have also expressed their viewpoints on the subject.
On July 14, the Paraguayan Senate passed a bill regulating cryptocurrencies and mining. Despite prior opposition to the crypto industry in Paraguay, the bill passed after extensive debates and offers significant benefits to the sector. The National Securities and Exchange Commission in Paraguay will establish regulatory frameworks and oversight mechanisms for the industry, which will be exempt from value-added tax (VAT). The bill also allows crypto miners to access surplus energy at a special rate not exceeding 15% above the industrial price, as explained in a series of tweets by Senator Fernando Silva Facetti, the bill’s sponsor.
Paraguay benefits from abundant and affordable hydroelectric power due to the Itaipu Dam on the Paraná River, shared with Brazil.
Image Source: Varga Jozsef Zoltan/shutterstock
