Crypto critics have often accused Crypto miners of being the drivers of carbon emissions. Their point of view has been that Crypto mining consumes a lot of energy and encourages the production of electricity using fossil fuels.
However, the White House Office of Science and Technology Policy (OSTP) is set to change this narrative. The latest media release says the OSTP will conclude a report that President Biden had commissioned. The president aimed to investigate the impact of Blockchain and Crypto mining on the environment.
The fact-finding mission interviewed both proponents of Crypto mining and critics. Most organizations like Greenpeace and the Environment Working Group opined that Cryptos consume a lot of energy. However, the report is likely to have a balanced standpoint as Crypto miners were also given a chance to voice their opinions in the report-making process.
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Promoting Environmentally Friendly Ways of Crypto Mining
According to the OSTP associate director for energy, Costa Samaras, the White House is formulating a framework for regulating Crypto mining. While the goal is energy conservation, Samaras confirms the new policy recognizes that the integration of Cryptos into the financial system is inevitable. Hence, the aim is to ensure that digital assets are mined per climate-friendly standards.
While the proposal does not mull banning Crypto mining, the OSTP is contemplating incentivizing miners from mining during peak-energy consumption hours. However, this option is subject to State policies as some miners have been granted industrial energy tariff rates to operate in some areas.
The Crypto Community Is However Fighting Government Interference
The Crypto mining community is proactive in ensuring that the government or critics do not interfere with mining activities. Recently, the House of Representatives Democrats requested the EPA to investigate Crypto mining.
Over 50 BTC miners rebutted the representative’s demands by demonstrating how mining does not increase energy consumption. They argued that Crypto mining should be treated like any other industry that consumes energy. Often, Crypto mining has been isolated by environmental groups who overlook the industrial environments such as the steel industry.
Nonetheless, Crypto miners alluded that compliance with EPA regulations does not make Crypto mining environmentally harmful.
Crypto Regulation Is on the Rise
3 years ago, analysts projected that Crypto regulation was inevitable. Fast-forward to 2022, and the projection is coming to fruition as financial watchdogs worldwide develop regulatory frameworks. For instance, in the USA, the SEC and the CFTC have increased their resources to monitor Crypto trading. In the EU economic zone, the ECB is enacting a policy that could come into force in 2024 amid rising Crypto adoption.
Despite the growing advocacy for regulation, most regulators concede that Cryptos are too entrenched in the financial system to ban.