Bitcoin Mining is Not a Threat to the United States and Here is Why

House Republican Demands Answers from The Office of Management and Budget

House Majority Whip Tom Emmer says the Biden administration is abusing its power to unfairly target bitcoin miners. In a letter to the Office of Management and Budget (OMB), Emmer questioned the agency’s approval of an emergency request for bitcoin mining firms to share proprietary energy usage data.

How Bitcoin Mining Works

Bitcoin miners power the network behind the world’s largest digital currency. They use computers with high-energy servers to compete to solve complicated math problems and mine bitcoin tokens.

Environmental Concerns Around Mining

Critics say bitcoin mining‘s high energy consumption has negative environmental impacts. However, supporters argue mining can utilize clean energy sources.

Justification for the Emergency Data Request

The Energy Information Administration (EIA) says it needs the mining energy data to analyze implications for the U.S. grid. It cited rising bitcoin prices and a winter cold snap as justification for the “emergency” request.

Potential Overreach and Lack of Transparency

Emmer argues the EIA lacks authority for this data demand. The request avoided standard transparency protocols like public comment periods. Miners face penalties for noncompliance.

Link to Biden Administration Climate Change Policies

Emmer suggests the move relates to Biden policies like SEC proposed rules mandating climate disclosures. Some see it as another attempt at emissions tracking and energy use reporting.

Concerns Over Hostile Crypto Regulation

Many criticize the administration’s hostile stance toward crypto regulation. Emmer believes the data will further anti-crypto narratives. He and others want more crypto innovation support.