US Department of Energy Resumes Efforts to Survey Crypto Mining Firms Amid Legal Wrangle
July 11, 2024 BACK TO NEWS
The US Department of Energy (DOE) has restarted its efforts to gather data from crypto mining companies, following a previous attempt that ended in legal controversy. The Energy Information Administration (EIA), the DOE's statistical arm, conducted a public webinar aimed at soliciting feedback from stakeholders, including crypto miners and industry experts.
Led by Steve Harvey from the EIA, the webinar focused on refining the survey methodology based on public input. The goal is to prepare for a formal rule-making proposal, which will eventually be published in the Federal Register.
Earlier this year, the DOE faced legal challenges after it issued an emergency data collection request from crypto miners, citing Bitcoin's significant price surge as justification. However, the Texas Blockchain Council and Riot Platforms filed a lawsuit against the DOE, accusing it of overstepping emergency authority. As a result of the lawsuit, the DOE agreed to discard the data collected from mining firms.
Harvey highlighted several challenges faced during the initial survey, including difficulties in identifying market participants and the rapidly evolving nature of the mining industry. In response, the EIA aims to address these challenges by seeking clarity on key factors influencing energy usage in Proof-of-Work (PoW) crypto mining and determining the essential data points to collect from miners.
The agency is also exploring existing sources of information that could replace the survey, potentially reducing costs and improving efficiency.
Before finalizing the survey design, the EIA's proposed framework will require approval from the DOE. This renewed effort underscores ongoing regulatory efforts to monitor and manage the energy consumption associated with crypto mining activities, reflecting broader concerns about environmental impact and resource utilization in the digital asset sector.
As discussions continue, stakeholders are encouraged to participate in shaping the regulatory framework that will govern how energy data from crypto mining operations is collected and utilized by federal agencies.