4 participants of the United States House of Representatives operating within the Energy and Commerce Committee took a step forward and asked some questions from the four prominent crypto mining platforms directly. They have requested these venues to provide information regarding the likely impact of energy being consumed by them on the general atmosphere.
U.S. Policy Makers Enquire 4 Crypto Mining Venues about Energy Consumption
The letters were issued to Stronghold Digital Mining, Riot Blockchain, Marathon Digital Holdings, and Core Scientific. The policymakers Paul Tonko, Diana DeGette, Bobby Rush, and Frank Pallone bade the respective firms deliver information about their operations done in the previous year. The respective information would be related to the consumption of energy in their operations and that energy’s source.
The other factors deal with the percentage coming from the sources of renewable energy, as well as how frequently the operations have been curtailed by these companies. The prominent 4 participants of the House Committee additionally demanded answers regarding the average cost over each megawatt hour that these firms spent while mining cryptocurrency.
In the letter that was targeted toward Jason Les (the CEO of Riot Blockchain), the policymakers noted that there is enormous potential in blockchain technology and with it, personal information could be made additionally secure. As per them, the economy can become more efficient with this technology.
President Biden Inks Inflation Reduction Act Making It a Law
Nonetheless, they added, the consumption of the energy as well as the requirement for advanced to support the cryptocurrencies that are based on PoW consensus may, in a few cases, pave the way toward extreme externalities such as excessive electronic waste, and harmful emissions.
The request was witnessed after Joe Biden (the U.S. President) inked the Inflation Reduction Act and made it a law. This bill is considered by several experts as the largest legislation that could be assistive in confronting climate change.
The bill took into account the provision of benefits in return for supporting as well as advancing the energy projects in which “climate-smart” manufacturing and clean transportation are included. The Representatives highlighted that the whole climate is presently going through a crisis and proof-of-work-based mining of crypto plays a significant role in this issue.
Nearly 23 lawmakers issued a letter on 23rd April this year to the Environmental Protection Agency, persuading Michael Regan (the administrator) to evaluate which crypto mining companies are likely infringing the environmental statuses.
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