March 4, 2024

US Senators Introduce Bill on Ecological Transparency of Crypto Assets

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US Senators Introduce Bill on Ecological Transparency of Crypto Assets

U.S. Senators Introduce Crypto Asset Environmental Transparency Bill, which would require miners using more than 5 MWare required to report greenhouse gas emissions.

The bill was introduced by Senator Ed Markley and U.S. Rep. Jared Huffman.They believe that this will strengthen the supervision of cryptocurrencies that affect the environment.The lawmakers explained that mining bitcoin and other cryptocurrencies that use the Proof-of-Work (PoW) algorithm requires a large amount of electricity.According to the White House Office of Science and Technology, cryptocurrencies account for 1.7% of electricity consumed in the United States, of which 1.4% is Bitcoin.

According to Senator Markley, mining farms jeopardize the government's efforts to combat climate change.If the bill enters into force, any businesses using more than 5 MWelectricity for cryptocurrency mining, in accordance with the Clean Air Act, there will beAt the same time, it is unclear what further actions will be takenauthorities on the basis of the data received by the miners: will their activities be completely stopped, or will they beRestrictions have been imposed.

"This initiative will be an important step towards understanding the impact ofcryptocurrency mining on the environment, and will also make it possible to hold miners accountable for damage caused to the environment," the lawmakers noted.

In May, environmental activists called on the U.S. government to conduct inspections of mining operations and increase transparency regarding the use of electricity by miners.