• Soaring energy costs and climate goals are gradually drawing the Biden administration’s attention towards the toll that the mining of and other cryptocurrencies is having on the environment.
• This task has been given to the government by a technical team that will analyze and present recommendations to Capitol Hill legislators.

The White House is taking serious consideration of the impacts of cryptocurrency mining on our climate and the energy use of mining farms in the United States.

According to Costa Samaras, principal assistant at the Office of Science and Technology Regulation’s energy section, there are a number of recommendations that will be released by the Administration of President Joe Biden in order to better address the problem.

These recommendations are intended to lower the carbon footprint and energy consumption of cryptocurrency mining. The U.S. government hopes to thoroughly tackle the impact of mining activities, which are contributing to overloads of the country’s electrical network and threatening climate objectives, according to critics.

“It’s important, if this is going to be part of our financial system in any meaningful way, that it’s developed responsibly and minimizes total emissions,” Samaras, a professor at Carnegie Mellon University, told Bloomberg.

Investors in the industry are under more pressure

This report should be completed by the beginning of next year. The report’s release will allow legislators to reach a larger base of support in order to approve regulatory measures governing mining operations.

According to the publication it is unclear which government agency will carry out regulations that Congress has approved. What is certain is that the EPA, the Environmental Protection Agency, will not be charged with the execution of the regulations.

Samaras explains that the White House’s recommendations will pressure investors to avoid cryptocurrency mining. This is especially true if they are not in compliance with the environment regulations.

The Flipside

• According to the White House, cryptocurrencies are a national security concern. Instructing regulators to establish a framework to regulate digital assets, the Biden administration released instructions at the beginning of 2018.
• It was revealed that a government adviser had let the information slip on T.V. That the government was currently mining Bitcoin.
• Federal Reserve appears to be moving forward not only with the digital currency (CBDC) but also with accepting that it will need to continue with stablecoins.

Samaras said that the study, which is being conducted by the government with technical support, will examine the pros and disadvantages of mining Bitcoin and other cryptos in relation to energy consumption and their subsequent impacts on the environment.

The evaluation will cover all aspects of mining, from noise and environmental pollution to the efficiency of different methods of extracting the minerals. To determine the efficiency of each model, we will make comparisons between the Proof of Work (or Proof of Stake) models.

“We’ve seen reports about noise, local pollution, older fossil generators being restarted in communities. These are not trivial loads.” outlined the specialist.

Why you should care

• The government has been cautious about cryptocurrency, particularly considering its fiscal goals as well as the desire of various states to fill their coffers with taxes on mining.
• In August, the report will present a series of regulations guidelines to Congress.

The other side of coin is the lobbying by mining firms and exchanges in Washington, to stop Congress from imposing harsh sanctions on crypto companies in general.

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