The Sierra Club told the court that there is an urgent need for accurate information about the impact of cryptocurrency miners on electricity demand, both under everyday conditions and in situations of exceptionally high demand.
The Texas Blockchain Council and Riot Platforms had argued that the investigation was a product of a “botched government process” and that mining companies could suffer “irreparable harm if forced to disclose confidential, sensitive and proprietary information.” A hearing to discuss a preliminary injunction was scheduled for Wednesday, but was canceled, according to court documents.
“Their operations in Texas and across the country are driving up energy prices and threatening grid reliability,” Bender said in a statement. statement Wednesday. “After the devastating impact of Winter Storm Uri, which left hundreds dead in Texas due to power outages, it is especially reprehensible for Texas cryptocurrency miners to hinder grassroots efforts to collect the essential data energy regulators need to deliver reliable, affordable energy.”
The beginnings of the trial
The Ministry of Energy is being sued after the Energy Information Administration (EIA) — a statistical and analytical agency within the department — announcement Earlier this month, it reportedly began investigating crypto mining companies following an “urgent request for data collection,” citing the increase in the price of bitcoin over the past few months as evidence of the request emergency.
In response to the judge’s order to halt the investigation, the EIA said it would not seek to impose fines, penalties or other consequences on companies that fail to respond to the investigation until to March 22.
“Delaying EIA access to this information for months not only risks the ability of grid operators to ensure electrical reliability for homes and businesses, but also prevents grid operators and federal and state regulators from “have the information necessary to prevent the abuse of current market rules through cryptocurrency mining. Companies from charging individual taxpayers, collectively, tens of millions of dollars to avoid network outages,” the Sierra Club said in his report. Short.
Preventing the EIA from collecting data for months will increase the risk of repeated power outages during intense weather events, the Sierra Club said.
“Because electricity reliability can be a matter of life and death, and because distorted demand can have such a heavy impact on the finances of residential and small business customers, it is essential that grid operators, Utilities, federal and state regulators, and the public are quickly gaining a better understanding. of the impacts of cryptocurrency facilities on the system,” the organization said in the submission.
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