U.S. Crypto Mining Leaders Express Concern Over EIA's Energy Usage Survey
Summary:
U.S. cryptocurrency mining leaders have voiced their concerns over an emergency survey initiated by the U.S. Energy Information Administration (EIA) to measure the industry's energy consumption. This mandatory survey targeting the cryptocurrency mining sector, with an intended aim of building a consumption and sources profile, has led to suspicions about possible political motives behind the move. The industry also questions why similar surveys are not being carried out in other energy-intensive sectors. This sudden focus on the crypto mining sector has led several major mining companies to consider legal options and raised concerns about governmental bodies overstepping boundaries regarding sensitive industry data.
American cryptocurrency mining leaders have expressed concerns about a surprise survey designed to gather insights into the industry's energy usage and sources. In light of the U.S Energy Information Administration's (EIA) decision to conduct a mandatory and temporary survey on electricity consumption in local mining companies, Cointelegraph made inquiries to prominent mining organizations in the country. In January 2024, the Department of Energy's statistical branch received approval for its emergency information gathering request. The EIA previously shared with Cointelegraph that it seeks to compile a basic picture of electricity providers for American cryptocurrency miners and pinpoint areas with high mining concentration.
Several mining companies and groups within the wider blockchain sphere have voiced suspicions about the legality of the method and why state-run establishments are focusing on the cryptocurrency mining sector. Skepticism arises from the uncertainty surrounding the need for an urgent survey and suspicions of political motives.
President of the Texas Blockchain Council (TBC), Lee Bratcher, critiqued the unprecedented information gathering request, suggesting it might be worrisome for industries that depend on data centers for their operations. According to Bratcher, the EIA's compulsory emergency survey of electricity consumption data is merely the latest politically motivated campaign against Bitcoin mining, cryptocurrency, and American innovation.
Echoing Bratcher's concerns, a Riot Blockchain spokesperson told Cointelegraph that the company sees the EIA's request as illicit and is exploring legal avenues. Riot's public policy chief, Brian Morgenstern, accused the EIA's survey of being politically motivated, targeting Bitcoin and driven by U.S. Senator Elizabeth Warren, a self-identified "anti-crypto" advocate.
The industry questions the EIA's failure to implement similar mandatory data collection efforts on other U.S. sectors that consume large amounts of energy. Taras Kulyk, CEO of SunnySide, a firm offering hardware and infrastructure to Bitcoin miners, questions the purpose behind this specific focus on the digital mining sector.
Riot's communications with Cointelegraph reveal concerns of the precedent the EIA's move could set for governmental organizations overstepping boundaries regarding sensitive industry data. The company suggests that other sectors should worry about governmental bodies publicly sharing private information.
In communications with Cointelegraph, Colin Harper, the head of research and content at Bitcoin mining software business Luxor, labeled the EIA's action as an unfortunate development. He pointed out that the agency routinely runs surveys on energy consumption for commercial buildings and manufacturers but has only carried out one pilot program specifically targeting data center power usage.
Cointelegraph also contacted U.S. mining companies Hut8, Core Scientific, Marathon Digital, Foundry, and Iris Energy to glean their perspectives on the EIA's energy data information survey and gather their thoughts about its legality and whether they plan to comply. Iris Energy opted not to comment.
Published At
2/7/2024 5:30:00 PM
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