The U.S. government has halted an investigation into a cryptocurrency mining operation over its rising energy use following a lawsuit from an industry accused by environmental groups of fueling the climate crisis.
A federal judge in Texas granted an interim order blocking new requirements to verify cryptocurrency miners’ energy use, stating that the industry would suffer “irreparable harm” if forced to comply.
The U.S. Department of Energy launched an “emergency” initiative last month to examine the energy usage of mining operations, which use computational power to mine currencies like Bitcoin.
The growth of cryptocurrencies and mining activities has led to a surge in electricity usage, with data centers popping up and even reviving coal-fired power plants for mining operations.
The federal government requires more information on big miners’ electricity use, as mining facilities provided a significant portion of total U.S. electricity demand last year. Globally, cryptocurrency mining is responsible for a notable portion of energy consumption.
Campaigners warn that the increased electricity consumption from cryptocurrency mining exacerbates the climate crisis, with mining operations releasing significant amounts of carbon dioxide each year.
Cryptocurrency mining is straining power grids, with instances of Bitcoin companies receiving energy credits to reduce power usage during peak demand periods.
The industry has managed to avoid an investigation it deems burdensome, citing political motives from the government. The debate continues on the regulation of cryptocurrency mining in the U.S.
The Blockchain Council of Texas and other groups argue that the government’s actions are aimed at limiting or eliminating Bitcoin mining in the U.S., causing concerns for the industry and its employees.
Source: www.theguardian.com
