The “Crypto Asset Environmental Transparency Act” was introduced by Senators Ed Markey (D-MA), Jeff Merkley (D-ORE), and Jared Huffman (D-CA), and would mandate “an interagency assessment on the environmental and energy consequences of crypto asset mining.” It would be overseen by the Environmental Protection Agency (EPA).
Additionally, the EPA would examine the country’s crypto mining activity, and businesses would have to report their greenhouse gas (GHG) emissions.
According to the press release, businesses that use more than 5 megawatts of power would be obliged to report GHG emissions by cryptocurrency mining companies.
Sen. Markey stated on Thursday that “big-money [crypto mining] companies are undermining decades of progress in our fight against climate change by putting profits over the promise of our clean energy future,” endangering the dependability and safety of our grid in the process and increasing the likelihood that utilities will raise energy prices on working families.
Markey’s views are supported by a number of studies and research papers that show activities like bitcoin (BTC) mining are beneficial for reducing grid load as well as carbon emissions.
According to a report by the environmental, social, and governance (ESG) analyst Daniel Batten, bitcoin mining could reduce global carbon emissions by 5.32%.
In a report released on November 29, 2022, the Electric Reliability Council of Texas (ERCOT) demonstrates that bitcoin mining benefits the Texas system.
According to a study by ERCOT, Texas bitcoin mining businesses might use less electricity during the winter by 1.7 GW.
However, various studies over the years suggest that a majority of bitcoin mining operations are powered by renewable energy sources. U.S. senator Merkley claimed that “Crypto asset mining consumes massive amounts of electricity” and stressed “most of which is generated by burning fossil fuels” in the press release published on Thursday.