US lawmakers propose study of Bitcoin mining’s environmental impact

US lawmakers introduced a bill that would require the Environmental Protection Agency to conduct a comprehensive study of the mining industry’s environmental impact.

The agency would also be required to report greenhouse gas emissions from facilities with power consumption above 5 MW.

The bill’s authors are Representative Jared Huffman and Senator Edward Markey. They noted that the share of Bitcoin mining in total U.S. electricity consumption has already reached 1.4%. That share is enough to light all households in the country.

In their view, the industry emits as many greenhouse gases as seven million gasoline-powered cars.

“Crypto mining facilities not only undermine our efforts to combat the climate crisis, but they can also pollute neighboring communities. Allowing this industry impunity for causing such harm to the environment conflicts with numerous federal policies, and we must understand the full harm this industry poses,” said Huffman.

Senator Jeff Merkley stressed that mining companies consume enormous amounts of electricity, most of which is generated from burning fossil fuels. The activity of these facilities leads to higher electricity rates and greater volumes of electronic waste.

The authors contend that Bitcoin’s negative environmental impact is linked to the use of the Proof-of-Work consensus algorithm. They point to the Ethereum blockchain, which cut energy consumption by 99.9% after the transition to Proof-of-Stake.

The bill is backed by advocacy groups Sierra Club, Earthjustice, Environmental Working Group (EWG) and Seneca Lake Guardian.

Yvonne Taylor, vice president of the latter, said the crypto-mining industry is growing, “threatening all communities in the country.” She noted that the organization has secured a moratorium on cryptocurrency mining powered by fossil fuels in New York State.

“Earlier this year we won our campaign to block the expansion of Greenidge Generation, a large Bitcoin mining facility that harms Seneca Lake, our local economy and the climate,” she added.

Taylor believes that climate-killing crypto mining must be tackled at the federal level.

“The incentives built into digital assets such as Bitcoin require more and more electricity, not less, even as all of us need to use it more efficiently. We are grateful to Senator Markey for making the climate and energy implications of cryptocurrency mining a priority,” said Scott Faber, vice president of the Environmental Working Group.

As reported in September, the EWG launched a $1 million advertising campaign to promote Bitcoin’s transition to Proof-of-Stake.

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