US Senator Elizabeth Warren has called on the US Environmental Protection Agency and Department of Energy to “use their authority” on bitcoin miners to require them to disclose their energy use and emissions.
“I’ve been ringing the alarm about the risks that Bitcoin poses to our power grids and climate,” said Warren, sharing a recent article from the New York Times outlining the bitcoin network’s excessive energy usage.
Bitcoin mines are increasing energy bills for millions of American families while enriching crypto executives — and causing as much pollution as an additional 3.5 million gas-powered cars. An alarming @nytimes report.https://t.co/MmXUu2eQbE
— Elizabeth Warren (@SenWarren) April 17, 2023
Bitcoin’s environmental impact has long been a source of controversy.
Miners use massive amounts of power to run the network, earning rewards in the form of newly minted bitcoins for their efforts. Some estimations compare the bitcoin network’s carbon footprint to that of Singapore.
Though many bitcoin proponents take umbrage with these criticisms, energy consumption was cited by Kazakhstan authorities as the primary motivator behind the central Asian nation’s sweeping ban on bitcoin mining in 2021.
Similarly reasoned bans have taken place in Iceland and Iran.
Widespread state bans on bitcoin mining have concentrated bitcoin miners in the US, specifically Texas, in recent years.
The New York Times accused the sector of exploiting a Texas programme that provides subsidies to companies that go offline at times of stress on the power grid.
Texan bitcoin miners bilaterally agreed to go offline during the State’s 2021 winter storm to relieve the power grid, earning millions in these subsidies as a result.
“The public pays the price” for bitcoin mining, said the NYT, though the subsidies programme is available to all businesses in the state.
Warren’s comments come a day before Circle, the US company that mints the US$4bn USDC stablecoin, is due to testify in a Congress hearing titled ‘Understanding Stablecoins’ Role in Payments and the Need for Legislation’.