US to require cryptocurrency mines to report energy use data

The US government plans to require companies that mine cryptocurrencies to report information on their energy usage.

The Energy Information Administration (EIA) announced that starting next week, “identified commercial cryptocurrency miners will be required to investigate and provide details about their energy use.”

“We specifically focused on how the energy demands of crypto mining are evolving and identified geographic regions where we are seeing high growth,” EIA administrator Joe DeCarolis said in a written statement this week. , to quantify the power sources used to meet crypto mining demand.”

The study was authorized by the White House Office of Management and Budget as an “emergency data collection request.”

To put new cryptocurrencies into circulation, “miners” use energy-consuming computers. These computers generate puzzle solutions that unlock new cryptocurrencies.

Cryptocurrency mining in the United States has increased significantly over the past few years, especially after the crackdown on activities in China in 2021.

a Preliminary estimates from EIA At the lower end of that estimate, crypto mining would use as much electricity as entire states like Utah and West Virginia, according to the report.

It accounts for 0.6% to 2.3% of the country’s total electricity consumption.

The EIA said its use raised concerns about strain on the country’s power grid, soaring electricity prices and the potential for additional carbon dioxide emissions that cause global warming.

Due to the increase in electricity demand due to virtual currency mining, depending on the location, Enabling idle fossil fuel power plants To get back online.

Democratic lawmakers expressed concern about the energy use and climate impacts of this practice, requested the federal government to track them.