The White House is going after crypto miners

The White House issued two days ago on Friday a report about crypto mining contribution to greenhouse gas emissions in the US.

This report came six months after Biden signed executive order 14067 regarding developing digital assets, to fit in line with the climate change objectives.

You can find the complete pdf report through this highlighted link.

What's the problem with mining?

The report showed that the United States is estimated to host about a third of global crypto-asset operations, which currently consume about 0.9% to 1.7% of total U.S. electricity usage. This range of electricity usage is similar to all home computers or residential lighting in the United States.

The Bitcoin network currently consumes an estimated 150 terawatt-hours of electricity annually. And the USA is hosting around 35% of the mining activity so the USA is providing around 52.5 terawatt-hours each year to support BTC mining on its soil.

How will this impact mining in the US?

The team behind the report called for standards for low energy intensities, low water usage, low noise generation, clear energy usage by operators, and standards over carbon-free generation to match or exceed electricity load that tighten over time.

And also added “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,” said in a statement.

Also the concerns of this energy problem come after sharp rises in energy prices all around the globe. Electricity price quadruped  in certain places and power grides being put under pressure is also one of the reasons of the timing of this reports. States like California urged citizen to reduce their power usage in those times when the state isn't able to cover all it's electricity consumption, because of an increased demand and extreme heat.

Even if there wasn't any immediate impact on mining for the moment, this report is very eye opening on what to expect for the White House  in regards on crypto policies and regulations.

We can only expect more regulations and those can have various impact on the markets. Regulation possibly would make it harder for the average person to use the different crypto networks but it will pave the way for institutions.