A government investigation seeking data on cryptocurrency mining companies’ power consumption has been filed, according to a court document filed Friday.
The Department of Energy was sued in a Texas court after the Energy Information Administration – a statistical and analytical agency within the department — announcement in February, it would begin investigating crypto mining companies following an “urgent data collection request.” The Texas Blockchain Council and Bitcoin mining company Riot Platforms then sued the Department of Energy last week and said the The investigation was the product of a “botched government process.”
The parties involved in the lawsuit said they had reached an agreement, according to a notice filed Friday. As part of this agreement, the EIA must “destroy any information” already received and withdraw the investigation. The EIA will issue a new notice on the investigation, which will allow for public comment, according to the filing.
The EIA said it hopes to work with crypto mining companies in the future, in an emailed statement to The Block.
“We hope to be able to work with companies in the cryptocurrency mining industry to provide the American public with a clear understanding of the energy consumption from cryptocurrency mining operations in the United States, in the same way that we do with d “other sectors,” the EIA said. said.
The Texas Blockchain Council and Riot Platforms applauded the end of the emergency investigation in a statement released Friday.
“The administration engaged in a targeted abuse of the government’s emergency authority to attack a legitimate industry for political purposes,” TCE President Lee Bratcher said in the release. “The government demand – and promise to publish – sensitive commercial information, under penalty of criminal sanctions, is a threat to free enterprise everywhere. We are pleased to now have an enforceable order that prevents prevent them from doing so.
A victory for crypto
The Chamber of Digital Commerce called Friday’s agreement a “monumental victory” for cryptocurrency mining.
“Today marks a significant triumph for the cryptocurrency mining sector, as announced by the United States Energy Information Administration (EIA). retracted its emergency investigation targeting cryptocurrency miners,” the group said in a statement. statement.
Majority Whip Tom Emmer, R-Minn., who had previously writing to the U.S. Office of Management and Budget about concerns over OMB’s use of its emergency approval authority, also welcomed the news.
“The OMB cannot abuse its ’emergency’ powers to allow agencies like the EIA to ridiculously claim that bitcoin miners pose a threat to public safety and subject this industry to new rules and unverified regulations,” Emmer said. said on X Friday.
Concerns about environmental damage
The Sierra Club, one of the largest local environmental organizations in the country, deposit an amicus brief in support of the Department of Energy on Wednesday.
In a statement, Sierra Club energy director Holly Bender compared the energy consumption of cryptocurrency mining to that needed to light every home in the United States, and said it generates more pollution than seven million cars. Bender also referenced the harsh winter and ice storm that hit Texas in February 2021, highlighting the potential impacts of high energy use during extreme weather events.
“Their operations in Texas and across the country are driving up energy prices and threatening grid reliability,” Bender said in the release. statement. “After the devastating impact of Winter Storm Uri, which left hundreds dead in Texas due to power outages, it is particularly reprehensible for Texas cryptocurrency miners to hinder grassroots efforts to collect data essential elements that energy regulators need to provide reliable and affordable energy.”
Updated at 4:55 p.m. ET to include statements from EIA and TBC
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