- The U.S. has dropped its emergency assessment of power consumption within the Bitcoin mining sector.
- This decision follows legal action by mining firms Riot Platforms and the Texas Blockchain Council.
- Estimates suggest BTC mining contributes 2.3% of energy consumption in the U.S.
The United States government is abandoning its emergency assessment of power consumption within the Bitcoin mining sector. Notably, this decision comes after Riot Platforms and the Texas Blockchain Council initiated a legal action.
The lawsuit, which secured a 14-day delay last week, challenged the mandatory submission of data on power usage imposed by the Cryptocurrency Mining Facilities Survey. Allegations surfaced that the Energy Information Administration (EIA) failed to justify the urgency of the survey as required by federal law.
In response to the lawsuit, the Department of Energy and the EIA have agreed to withdraw the survey entirely. Moreover, they pledged to destroy all data collected thus far.
Pierre Rochard, the vice president of research at Riot Platforms, called attention to the development in a recent statement on X. Rochard shared a screenshot of a court document that elaborated on the new agreement the parties involved have reached.
Per the disclosure, the energy regulator will now pursue a nonemergency survey, allowing a 60-day window for public comments under the Paperwork Reduction Act.
The contentious issue revolves around the perception that Bitcoin mining necessitates substantial electricity consumption to operate intricate computers that solve cryptographic problems.
Initial estimates released by the EIA last month suggest that the industry could contribute between 0.6% and 2.3% to the total annual electricity consumption in the United States. To provide context, in 2023, Utah consumed 0.8% of the total electricity consumption. Meanwhile, with a population close to 8 million, Washington State consumed 2.3%.
While some argue that mining facilities bolster grid reliability by responding to severe weather events, concerns persist regarding their strain on electric grids and contributions to emissions.
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