Key Points
- A government survey on cryptocurrency mining companies' energy use has been halted, as per a recent court document.
- The Energy Information Administration (EIA) has agreed to withdraw the survey and destroy any collected data.
The Energy Information Administration (EIA), a statistical and analytical division of the Department of Energy, had planned to conduct a survey on the electricity consumption of cryptocurrency mining companies.
However, a court document filed last Friday revealed that the survey has been put on hold.
Lawsuit Ends in Agreement
The Texas Blockchain Council and Riot Platforms, a Bitcoin mining company, had filed a lawsuit against the Department of Energy. They claimed the survey was the result of a "sloppy government process."
According to a notice filed last Friday, all parties involved in the lawsuit have reached an agreement. As part of this agreement, the EIA must destroy any information already collected and cancel the survey.
Additionally, the EIA will issue a new notice about the survey, allowing for public comments.
Reactions to the Agreement
The Chamber of Digital Commerce celebrated the agreement as a "monumental victory" for the cryptocurrency mining industry.
Tom Emmer, R-Minn., the Majority Whip, who had previously expressed concerns about the Office of Management and Budget's use of its emergency approval authority, also welcomed the news.
On the other hand, the Sierra Club, a prominent environmental organization, supported the Department of Energy. Holly Bender, the Sierra Club's Chief Energy Officer, compared the energy usage of crypto mining to that required for lighting every home in the U.S.
She also highlighted the pollution generated by crypto mining, which she claimed was equivalent to that of seven million cars.
Bender further emphasized the potential impacts of high energy consumption during extreme weather events, citing the severe winter and ice storm that hit Texas in February 2021.
She concluded by stating that crypto mining operations in Texas and across the country are driving up energy prices and threatening grid reliability.
