• US lawmakers have expressed intentions to reintroduce a bill that would require crypto mining companies to disclose emissions data for operations that use more than five megawatts of electrical power.
• The proposed Crypto-Asset Environmental Transparency Act would require the administrator of the Environmental Protection Agency (EPA) to head up an interagency investigation of the impact of crypto mining in the United States.
• The SEC has been cracking down on unregistered digital asset exchanges, security token offerings, and Initial Exchange Offerings (IEOs).
US Legislators Call for Greater Transparency on Crypto Mining Emissions
US lawmakers have expressed intentions to reintroduce a bill that would require crypto mining companies to disclose emissions data for operations that use more than five megawatts of electrical power. On Friday, United States Senator Edward Markey and Representative Jared Huffman revealed intentions to reintroduce the Crypto-Asset Environmental Transparency Act in Congress in a bid to promote greater transparency around crypto mining and its environmental impacts.
Details of Proposed Bill
The bill was initially put forward in December 2020 during the last Congressional session, with Sen. Jeff Merkley acting as its cosponsor in the Senate. More specifically, the bill would require crypto mining companies to disclose emissions for operations that consume more than 5 megawatts of power or “multiple crypto-asset mining facilities that are owned by the same company and each have a power load that is less than 5 megawatts; but have a cumulative power load that is greater than or equal to 5 megawatts.” Moreover, it will allocate $5 million budget for EPA administrator’s interagency investigation into US crypto mining activities.
Support from Public Organizations
Senator Markey listed 16 public organizations that support this bill, including such groups as the Sierra Club, Greenpeace USA, Food and Water Watch, and National Stop Crypto Coalition. He said in a comment:”While we’re working together as a nation to face down an existential crisis that puts the health and safety of our people and our planet in jeopardy, crypto miners are sucking megawatt after megawatt from our public grids and emitting skyrocketing greenhouse gasses, just so they can make a buck for themselves.”Markey will soon chair a meeting of the Senate Environment and Public Works Committee’s Subcommittee on Clean Air and Nuclear Safety which will be focused on regulating cryptomining industry.
SEC Cracking Down on Unregulated Crypto Exchanges
The new bill seeking to bring regulations to crypto mining comes as US lawmakers have recently ramped up efforts to regulate the crypto industry in wake some high-profile failures last year. The SEC has been cracking down on unregistered digital asset exchanges, security token offerings, and Initial Exchange Offerings (IEOs).
Conclusion
US legislators are taking steps towards bringing greater transparency into cryptocurrency activities with their proposed Crypto-Asset Environmental Transparency Act which seeks increased disclosure about emissions generated by miners who consume more than 5 MW electricity. At same time regulators like SEC are also intensifying their efforts against unregulated exchanges offering Security Token Offerings (STOs) or Initial Exchange Offerings (IEOs).