Biden Admin Launches “Emergency” Survey of Bitcoin Miners’ Electricity Use

The Biden administration is imposing new reporting requirements on all U.S. cryptocurrency miners to disclose how much electricity they use.

The so-called “emergency survey” marks another attempt by the US government to curb negative profits from bitcoin mining, which has been widely criticized by Democrats for polluting the environment.

Emergency Bitcoin Mining

The Energy Information Administration (EIA) will launch its survey next week, asking mining companies how many mines they own, where they operate and whether they deal with cryptocurrencies using proof of work (POW) or proof of stake (POS). Consensus method.

“We're focusing specifically on how the energy demand for cryptocurrency mining is evolving, identifying high-growth geographic areas and measuring the electricity sources used to meet the demand for cryptocurrency mining,” EI Administrator Joe DeCarolis said in a statement on Wednesday.

Miners must submit monthly reports and failure to do so could result in “criminal penalties, civil penalties and other sanctions.”

According to the EIA's official statement, the survey needed to be conducted as an urgent process because “the potential harm to the public is reasonable if normal cleanup procedures are followed.”

As evidence, the EIA cites Bitcoin's 50% price increase over the past three months as proof that the mining industry can grow exponentially in the short term.

“Higher prices encourage more crypto mining activity, which in turn increases electricity consumption,” EA said.

He cited the major “cold snap” currently plaguing the United States, increasing demand for electricity and putting more stress on the power grid. The combined effects of Bitcoin mining and congested electricity systems “may result in demand peaks that affect system operations and consumer prices,” the agency wrote.

Dealing with Bitcoin's energy risks

States like Texas have worked on this in the past by establishing demand response programs with the mining industry. The program requires miners to turn off their machines to the electrical grid during periods of high stress and subsidizes those miners during their downtime.

Previous studies and analyzes of environmental issues have estimated that Bitcoin's green energy mix is ​​more than 50%, making it one of the most sustainable energy industries on Earth.

The Biden administration previously tried to impose a 30% tax on Bitcoin miners to prevent environmental damage, but failed.