Crypto Mining Activities Causes Concern Among Democrats Lawmakers


Democratic members of the United States Congress, led by Senator Elizabeth Warren, are dissatisfied with the growth of crypto mining activity in the country and have written to two federal agencies about the effect of these activities on the country.

According to the report, the letter was signed by Senator Elizabeth Warren, a vocal critic of the crypto industry, alongside other Democratic House members and was addressed to the Department of Energy and the Environmental Protection Agency.

According to the letter, seven of the largest crypto mining firms in the United States could use over 1 gigawatt of electricity, the equivalent of two standard coal plants leading to concerns about the environmental impact of the activities.

The letter also said that crypto mining facilities were causing increases in energy costs for residents and small businesses. It cited the case of Plattsburgh in New York, where electricity bills were up to $300 higher than usual.

The letter also cited a study that estimated that “the power demands of cryptocurrency mining operations in upstate New York push up annual electric bills by about $165 million for small businesses and $79 million for individuals.”

A recent report submitted to the US Congress revealed that a handful of crypto mining companies were consuming enormous energy, prompting the lawmakers to write to these federal agencies.

The letter concluded that these federal agencies should compel crypto mining firms to release information on their energy use and emissions to provide data that policymakers can use for lawmaking processes.

Crypto Mining in the US

The United States has become a choice location for miners after China banned them from its jurisdiction.

States like Texas have witnessed an influx of miners due to its cheap electricity. Others like New York consider regulating the space by introducing a two-year moratorium that bars miners from using fossil fuels.