White House Drafts Report on Energy Consumption, Crypto Mining in Scope

The Biden administration is reportedly preparing policy recommendations to reduce the energy consumption by cryptocurrency mining rigs and control emissions footprint.

• According to coverage by Bloomberg, the report on energy consumption that will include cryptocurrency mining, emissions, grid strain, and noise is expected to release in coming August.
• Costa Samaras, principal assistant director for energy for the White House Office of Science and Technology Policy, was quoted saying:

“It’s important if this is going to be part of our financial system in any meaningful way, that it’s developed responsibly and minimizes total emissions. When we think about digital assets, it has to be a climate and energy conversation.”

• The report, which is currently being drafted, could be one of the first studies after President Joe Biden’s executive order that asked federal entities to monitor crypto mining activities.
• In April, this year, a coalition of House Democrats had pressurized the Environmental Protection Agency (EPA) to crack down on greenhouse gases from the cryptocurrency mining industry.
• However, many view the role of the federal government as forming disclosures to market players who will then enforce crypto miners to clean up their operations.
• Last month, Energy Web had recently launched a scoring mechanism to gauge how Bitcoin miners and other industries are using their consumption to reduce emissions. Its CEO, Jesse Morris, stated:

“I have a really hard time seeing some sort of a stick approach. I think the most bang for their buck is going to be on education and disclosure of bitcoin mining – and that would send a huge signal, too.”

• The development comes just a day after a Denver-based crypto mining company, Crusoe Energy announced opening an office in gas-rich Oman’s capital city, Muscat. The Oman Investment Authority had participated in the company’s $505 million funding round concluded earlier in April.
• Crusoe will deploy its mining equipment to capture the flared gas produced at the Middle Eastern country’s well sites.
• The move aligns with Oman’s efforts of cutting fossil fuel waste generation.