Environmental advocacy groups have decried the industry’s resistance to the survey as “reprehensible,” expressing concerns about potential consequences for the nation’s power infrastructure.
Legal Battle with Crypto Miner Hampers US Efforts to Monitor Surging Power Consumption
A legal skirmish between U.S. officials and major cryptocurrency mining entities has thrown a wrench into the government’s efforts to comprehend the escalating power consumption of the crypto-mining industry. This setback comes at a critical juncture, with record-breaking activities in the sector raising concerns about the strain on energy grids and its impact on electricity prices.
Riot Platforms, a prominent player in the U.S. bitcoin mining scene, and the Texas Blockchain Council, a leading industry group, recently filed a lawsuit against the mandatory data requests issued by the U.S. Energy Information Administration (EIA). The survey, intended to assess the electricity consumption of crypto-mining operations, prompted the legal action, resulting in the withdrawal of the emergency survey this week.
Environmental advocacy groups have decried the industry’s resistance to the survey as “reprehensible,” expressing concerns about potential consequences for the nation’s power infrastructure. The abrupt cancellation of the survey also raises questions about the government’s ability to monitor and manage the surging power consumption driven by crypto-mining activities.
According to Reuters calculations and estimates from data-producing firms focused on Bitcoin and electricity use, the mining of digital coins reached a peak on February 7. Projections suggest that the sector will consume more than 60 terawatt hours in the U.S. this year alone, nearly matching the annual electricity consumption of Israel.
The lawsuit, filed on February 22 by the mining industry, argues that the survey’s fast-track approval process was unlawful. It also contends that the scope of the survey, which included questions about the precise geographic locations of miners and commercial partners, posed threats to their businesses and hard assets if made public.