Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
Texas Blockchain Council and Riot Platforms File Lawsuit Against EIA Regarding Confidential Bitcoin Mining Data Directive
The Texas Blockchain Council (TBC) and cryptocurrency miner Riot Platforms filed a lawsuit against the US Energy Information Administration (EIA) on Wednesday, alleging that the agency is imposing illegal data collection requirements on the Bitcoin mining industry.
In the previous month, the EIA announced its plans to begin gathering information regarding the electricity consumption of specific US-based crypto miners, starting in early February. This mandate pertains to commercial miners, who are required to report their energy usage. The decision followed an emergency data collection authorization from the Office of Management and Budget on January 26.
The TBC, a non-profit organization, pointed out that the EIA is requesting detailed information such as the types of equipment utilized and the locations of mining sites. The council also raised concerns that this sensitive data could be disclosed publicly, which might lead to increased scrutiny of the sector, as suggested by earlier remarks from The White House.
“This action is part of a larger strategy by Senator Warren and the Biden Administration as they adopt a ‘whole of government approach’ to challenge the digital asset sector,” the council stated.
The TBC further described the initiative as a “direct attack on private enterprises under the pretense of an emergency.”
Texas Blockchain Council Critiques US Senator Elizabeth Warren
In a report dated February 1, the EIA indicated that the annual electricity consumption attributed to crypto miners has surged from 0.6% to 2.3%. In response to this trend, the EIA announced its plans to oversee and regulate the energy consumption associated with mining activities.
Related Posts
However, the TBC vehemently opposed the push for increased oversight. This “intrusion” signifies a troubling escalation in the monitoring and regulation of the cryptocurrency industry, it asserted.
“It’s clear that this survey is not concerned with grid stability, as Bitcoin miners represent the most adaptable load on any grid, but is rather a politically motivated initiative spearheaded by individuals like Elizabeth Warren,” stated Lee Bratcher, President of the TBC.
Warren, along with other Democratic legislators, had previously urged major US crypto mining firms to reveal their energy consumption data.
Last year, a select group of these companies called on the US Environmental Protection Agency to establish regulations mandating crypto-mining operations to report their annual energy usage.
Advantages and Challenges of Bitcoin Mining
Bitcoin mining provides advantages such as network decentralization and profit potential for miners. However, it also presents risks that affect both miners and the broader community.
The Rocky Mountain Institute estimates that Bitcoin mining worldwide consumes around 127 terawatt-hours (TWh) each year, surpassing the energy consumption of certain nations. Nevertheless, when compared to the banking sector, Bitcoin’s energy usage is considerably lower, estimated at merely 1/56th.
The post Texas Blockchain Council, Riot Platforms Sue EIA Over Sensitive Bitcoin Mining Data Order appeared first on Cryptonews.
