Texas Blockchain Council, Riot Platforms Sue EIA Over Sensitive Bitcoin Mining Data Order

Crypto Reporter

Shalini Nagarajan

Crypto Reporter

Shalini Nagarajan

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Shalini is a crypto reporter who provides in-depth reports on daily developments and regulatory shifts in the cryptocurrency sector.

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Last updated: 

February 22, 2024

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The Texas Blockchain Council (TBC) and crypto miner Riot Platforms sued the US Energy Information Administration (EIA) on Wednesday, accusing the agency of making unlawful data collection demands from the Bitcoin mining sector.

Last month, the EIA said it would start collecting data on how much electricity certain US-based crypto miners use, beginning early February. This requirement applies to commercial miners, who must disclose their energy consumption. The decision followed an emergency data collection approval from the Office of Management and Budget on Jan. 26.

TBC, a non-profit association, noted that the EIA asked for specifics like the types of machines used and the locations of mining operations. It also expressed concern that this sensitive information could be made public, potentially leading to further targeting of the industry, as indicated by previous statements from The White House.

“This move is part of a broader strategy by Senator Warren and the Biden Administration as they take a ‘whole of government approach’ to attack the digital asset industry,” the council said.

TBC further characterized the action as a “direct assault on private businesses under the guise of an emergency.”

Texas Blockchain Council Directs Criticism at US Senator Elizabeth Warren

In a Feb. 1 report, the EIA said that the annual electricity consumption for crypto miners has jumped from 0.6% to 2.3%. In light of this development, the EIA declared its intention to monitor and regulate the energy usage linked to mining operations.

Yet, the TBC strongly criticized the push for oversight. This “intrusion” marks a worrying escalation in monitoring and regulating the cryptocurrency sector, it said.

“It’s evident that this survey is not about grid stability, as Bitcoin miners are the most flexible load on any grid, but is a targeted political effort led by figures like Elizabeth Warren,” Lee Bratcher, President of the TBC, said in a statement.

Warren, alongside other Democratic lawmakers, previously requested major US crypto mining companies to disclose their energy usage.

Last year, a select few of them urged the US Environmental Protection Agency to implement regulations requiring crypto-mining operations to report their yearly energy consumption.

Benefits and Realities of Bitcoin Mining

Bitcoin

mining offers benefits such as network decentralization and profit opportunities for miners. But it also poses risks that impact both miners and the wider community.

The Rocky Mountain Institute estimates that Bitcoin mining globally consumes approximately 127 terawatt-hours (TWh) annually, exceeding the energy consumption of some countries. However, compared to the banking industry, Bitcoin’s energy usage is significantly lower, estimated at just 1/56th.