Soaring energy prices and climate objectives are progressively bringing the Biden administration’s attention to the environmental impact of mining Bitcoin and other cryptocurrencies.
The administration has charged a technical team with assessing these concerns and offering suggestions to lawmakers on Capitol Hill. The White House is looking at the impact of cryptocurrency mining on the environment and the high levels of energy consumption by mining farms in the US. According to Costa Samaras, principal assistant in the energy sector of the Office of Science and Technology Regulation, President Joe Biden’s administration is planning to release a series of policy suggestions to better address the problem.
The proposals aim to lower bitcoin mining’s energy consumption and carbon footprint. According to opponents, the US government intends to address the impact of mining operations, which are leading to overloads of the country’s electrical grid and jeopardizing climate goals. “If this is going to be part of our financial system in any meaningful manner,” Samaras, a professor at Carnegie Mellon University, said, “it’s crucial that it’s developed responsibly and limits total emissions.”
Investors Under Further Strain
By the middle of the year, the report should be ready. Legislators hope that by releasing it, they will be able to gain a larger base of support for the ratification of mining-related regulatory measures. According to the journal, it is yet unclear which government body would oversee enforcing the legislation that Congress has authorized. So far, authorities in the energy industry, such as the EPA (Environmental Protection Agency), have stated that they will not.
According to Samaras, the White House’s suggestions will undoubtedly persuade investors to avoid participating in cryptocurrency mining; particularly if the operations do not comply with environmental rules. On the other hand, Cryptocurrencies are a national security threat to the White House. The Biden administration gave authorities orders to build a regulatory framework for digital assets at the start of the year.
