Social Navigation

US Lawmakers Call For Greater Transparency On Crypto Mining Issuance – Regulation Coming?


US Lawmakers Call For Greater Transparency On Crypto Mining Issuance – Regulation Coming?

Source: Adobe Stock / phonlamaiphoto

US lawmakers have expressed their intention to reintroduce a bill that would require crypto mining companies to disclose emissions data for operations that use more than five megawatts of electrical power.

On Friday, U.S. Senator Edward Markey and Rep. Jared Huffman revealed plans to reintroduce the Crypto-Assets Environmental Transparency Act to Congress in a bid to promote greater transparency around crypto mining and its impacts. environmental.

The bill was originally introduced in December 2020 during the last session of Congress, with Senator Jeff Merkley serving as a co-sponsor in the Senate.

Specifically, the bill would require crypto-mining companies to disclose emissions from operations consuming more than 5 megawatts of power or “multiple crypto-asset mining facilities owned by the same company and each having an electrical load.” less than 5 megawatts”. ; but have a cumulative power load greater than or equal to 5 megawatts.”

Additionally, the bill would require the administrator of the Environmental Protection Agency (EPA) to lead an interagency investigation into the impact of crypto mining in the United States. This inquiry would have a budget of $5 million and would publish its findings within 18 months of the passage of the bill.

In a press release, Senator Markey listed 16 public organizations that support the bill, including groups such as the Sierra Club, Greenpeace USA, Food and Water Watch, and National Stop Crypto Coalition. He said in a comment:

“As we work together as a nation to address an existential crisis that threatens the health and safety of our people and our planet, crypto miners are sucking megawatt after megawatt from our public grids and emitting gasses. greenhouses that are skyrocketing, just so they can make money on their own.”

Markey will soon chair a meeting of the Senate Environment and Public Works Committee subcommittee on air quality and nuclear safety. This meeting will be “focused on the urgent need to crack down on the growing environmental impacts of cryptomining,” he said.

US Crypto Crackdown Escalates

The new bill to regulate crypto mining comes as U.S. lawmakers have recently stepped up efforts to regulate the crypto industry following some high-profile failures last year.

The SEC, in particular, has cracked down on crypto companies. In early February, the agency reached an agreement with crypto exchange Kraken to stop offering staking services or programs to customers in the country and pay $30 million in fines.

Additionally, the commission threatened Paxos, a US-registered company that issues the Binance USD (BUSD) stablecoin, with legal action over its issuance of BUSD tokens. The agency argued that BUSD is considered an unregistered security.

Global efforts have also been made to introduce a comprehensive crypto regulatory framework. As noted, the International Monetary Fund and the United States showed their support for India’s plan to coordinate global crypto regulation at the recent G20 meeting.

Joanna Swanson

Joanna Swanson is Europe correspondent at the Thomson Reuters Foundation based in Brussels covering politics, culture, business, climate change, society, economies and inclusive tech. With specific focus in breaking news, she has covered some of the world's most significant stories.