The Texas Blockchain Council (TBC) and Riot Platforms Sue US Energy Information Administration
The Texas Blockchain Council (TBC) and crypto miner Riot Platforms filed a lawsuit against the US Energy Information Administration (EIA) on Wednesday. They alleged that the agency had made unlawful data collection demands from the Bitcoin mining sector.
Last month, the EIA announced that it would begin collecting data on the electricity consumption of certain US-based crypto miners, starting in early February. This requirement applies to commercial miners, who are required to disclose their energy usage. The decision followed an emergency data collection approval from the Office of Management and Budget on Jan. 26.
TBC, a non-profit association, raised concerns about the EIA’s request for specific information such as the types of machines used and the locations of mining operations. There were worries that this sensitive information could be made public, potentially leading to further targeting of the industry, as indicated by previous statements from The White House.
The council characterized the action as a “direct assault on private businesses under the guise of an emergency.” It also suggested that this move is part of a broader strategy by Senator Warren and the Biden Administration as they take a ‘whole of government approach’ to attack the digital asset industry.
Texas Blockchain Council Directs Criticism at US Senator Elizabeth Warren
In a Feb. 1 report, the EIA stated that the annual electricity consumption for crypto miners had increased from 0.6% to 2.3%. In response, the EIA declared its intention to monitor and regulate the energy usage linked to mining operations.
However, the TBC strongly criticized the push for oversight, calling the “intrusion” a worrying escalation in monitoring and regulating the cryptocurrency sector. It suggested that this survey is not about grid stability, as Bitcoin miners are the most flexible load on any grid, but is a targeted political effort led by figures like Elizabeth Warren.
Warren, alongside other Democratic lawmakers, had previously requested major US crypto mining companies to disclose their energy usage. Last year, a select few of them urged the US Environmental Protection Agency to implement regulations requiring crypto-mining operations to report their yearly energy consumption.
Benefits and Realities of Bitcoin Mining
Bitcoin mining offers benefits such as network decentralization and profit opportunities for miners. But it also poses risks that impact both miners and the wider community.
The Rocky Mountain Institute estimates that Bitcoin mining globally consumes approximately 127 terawatt-hours (TWh) annually, exceeding the energy consumption of some countries. However, compared to the banking industry, Bitcoin’s energy usage is significantly lower, estimated at just 1/56th.