Texas Blockchain Council and Riot Platforms File Lawsuit over Crypto Energy Data Collection
Summary:
The Texas Blockchain Council (TBC) and Riot Platforms have filed a lawsuit against the Energy Information Administration's efforts to collect data on energy usage from cryptocurrency miners. The suit, alleging this is politically motivated overreach, was filed ahead of a February 23 deadline, with the threat of fines for non-compliance. The TBC has asked for a temporary hold on data collection. Critics suggest this data could be used for politically driven attacks on the crypto industry. A hearing to address the lawsuit took place on February 23.
The Texas Blockchain Council (TBC) and Riot Platforms, a mining company, have initiated legal proceedings due to the attempts by the Energy Information Administration to collect energy consumption data from cryptocurrency miners. The lawsuit, filed on February 22 in the Western District of Texas, accuses the U.S. Department of Energy, Energy Information Administration (EIA), Office of Management and Budget (OMB), and their heads of seeking intrusive data gathering from crypto miners. This information was demanded ahead of a deadline on February 23, with the threat of sanctions for non-compliance with an EIA survey regarding miners' electricity usage. The TBC contends that the data request, which it sees as politically motivated, constitutes an overreach in the government's powers since it requires mining companies to share potentially confidential details.
In its arguments, the TBC implicated Senator Elizabeth Warren and the White House for bringing about the EIA's actions. They also asked the court to place a temporary restraining order on the data collection. "This isn't a case of resisting a one-off call for sensitive data," stated Lee Bratcher, President of the Texas Blockchain Council. "It's a pushback against a broader pattern of regulatory overreach that imperils innovation and economic expansion. If the government can do this to one sector, it sets the precedent for other sectors to face the same treatment whenever they fall out of favor with the governing administration."
As part of wider efforts to develop a comprehensive understanding of miners' energy usage, the Department of Energy tagged the mandatory data collection as an "emergency" request. Critics, however, have questioned the immediate necessity of this move, fearing that the collected information could be used for politically driven attacks on Bitcoin and the wider crypto sector.
Tom Emmer, a representative from Minnesota, who has supported various pro-crypto legislative measures, expressed his concerns to the OMB director Shalanda Young in a letter dated February 20. He implied that the Biden administration might be aiming to advance climate change-related policies to the detriment of crypto miners. A hearing was scheduled for 5:30 pm UTC on February 23 in Texas, to address the lawsuit before the EIA's deadline, according to the TBC. At the time of report, there was no comment from Senator Warren's office.
Published At
2/23/2024 7:43:03 PM
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