Following up on the event in which U.S. President Joe Biden signed the first-ever executive order on cryptocurrencies, now the White House Office of Science and Technology Policy (OSTP) has stated that crypto miners should reduce greenhouse gas emissions, as well as details on the energy impact of crypto mining.
The report “Climate and Energy Implications of Crypto-Assets in the United States” assessed the environmental and energy implications of crypto assets and recommended monitoring and regulation in response.
In March, President Biden signed Executive Order 14067 on Ensuring Responsible Development of Digital Assets, directing federal agencies to coordinate their efforts in developing cryptocurrency regulations.
According to the report, crypto miners should work with the Environmental Protection Agency (EPA), the Department of Energy (DOE) and other federal agencies to reduce greenhouse gas emissions.
It also asks about the intensity and source of energy that goes into the crypto industry’s impact on the environment, noise pollution, water usage and how to build carbon-free energy to balance out the consumption of crypto mining.
It claimed that crypto mining, particularly bitcoin mining, consumes a large amount of electricity, undermining US sustainability goals. However, it also expressed support for crypto miners who use flared and vented methane to power their machines.
The order essentially requests federal agencies such as the Federal Trade Commission, the Securities and Exchange Commission, and the Commodity Futures Trading Commission to coordinate their efforts to oversee the crypto industry.
It also directs the Treasury Department to “produce a report on the future of money and payment systems.”
However, the White House went so far as to say that if measures to make mining greener fail, energy-intensive crypto mining could be banned entirely.
“Should these measures prove ineffective at reducing impacts, the Administration should explore executive actions, and Congress might consider legislation, to limit or eliminate the use of high energy intensity consensus mechanisms for crypto-asset mining.”
