Crypto Mining’s energy consumption raises further concerns from lawmakers

Following a congressional hearing in January that discussed cryptocurrency mining’s carbon footprint, House lawmakers on the Energy & Commerce Committee are asking four crypto mining platforms to disclose more information about their individual energy consumption.

Addressing Core Scientific, Marathon Digital Holdings, Riot Blockchain and Stronghold Digital Mining in four separate letters, House representatives request detailed information on the energy sources used for mining digital assets, renewable energy credit usage, as well as time usage. during business operations dedicated specifically to crypto mining activities.

“Blockchain technology holds tremendous promise that could make our personal information more secure and our economy more efficient,” the leaders of the Energy and Commerce Committee wrote. “But the energy consumption and the hardware required to support [proof-of-work]-based cryptocurrencies can in some cases produce serious externalities in the form of harmful emissions and excess electronic waste.”

Most cryptocurrency and digital asset transactions are conducted using a proof-of-work ledger software technology that ensures security during crypto mining activity. Significant amounts of electricity are required to process the complex algorithms that precede each ledger transaction leading to a digital currency token.

The high use of electricity during cryptomining activity has drawn scrutiny from environmentalists for the demand for electrical grids, which contributes to more fossil fuel emissions and thus climate change.

“Given the existential threat posed by the climate crisis, we are deeply concerned about efforts like this that increase demand for fossil fuels, with the potential to place new strain on our energy grid,” wrote Rep. Frank Pallone, D-N.J., Bobby Rush, D-lll., Diana DeGette, D-Colo., and Paul Tonko, D-N.Y.

In addition to an itemized picture of power consumption, the committee is also looking at 2021 year-end summaries of electricity used by crypto mining facilities and companies’ future plans to reduce wasteful energy consumption or offset their data centers’ power consumption.

Several lawmakers have honed in on cryptocurrency’s energy needs as the industry continues to grow. Earlier in 2022, a bicameral group of lawmakers wrote to the leadership of the Department of Energy to emphasize the amount of electricity blockchain software used for proof-of-work, and presented data suggesting that crypto mining companies generated high amounts of carbon emissions through their computing. .

“The results of our survey, which collected data from only seven companies, are troubling, with this limited data alone revealing that crypto miners are major energy users accounting for a significant – and rapidly growing – amount of carbon emissions,” the lawmakers noted. “Our research suggests that the overall US cryptomining industry is likely to be problematic for energy and emissions.”