Bitcoin
As DOE prepares for second round of controversial cryptocurrency mining research, industry weighs in
After the U.S. Department of Energy’s (DOE) first attempt to survey cryptocurrency mining companies about their energy use was thwarted by a lawsuit, the department is preparing to try again — but this time, it will first seek input from cryptocurrency industry participants.
The Energy Information Administration (EIA), a federal agency within the DOE that oversees energy statistics and analysis, hosted a public webinar on Wednesday to hear comments from interested members of the public — including cryptocurrency miners and industry participants — on how such research should be drafted ahead of a proposed rulemaking planned for publication in the Federal Register.
In January, the agency floated a mandatory survey of nearly 500 “identified” commercial cryptocurrency miners, requiring them to respond with detailed data about their energy usage or else risk civil and criminal penalties. The survey was authorized by the Office of Management and Budget (OMB), which oversees federal agencies and manages the federal budget, as an emergency data collection request, meaning it did not go through the normal notice and comment process.
The proposal was immediately received with cryptocurrency miners’ outrageincluding Marty Bent, director of bitcoin mining company Cathedra Bitcoin, who called mandatory research “Orwellian” in a blog post and expressed concern that it could be used to create a “hyper-detailed record of mining operations” in the U.S.
The following month, the Texas Blockchain Council (TBC), an industry group, and mining company Riot Platforms filed a lawsuit against the DOE, EIA, OMB, and several authorities, accusing them of violating the Administrative Procedure Act (APA) and requesting a temporary restraining order and preliminary injunction to halt the research until a proper notice and comment process was followed.
The EIA finally agreed to temporarily suspend the survey in February — now, they’re trying again.
More than 100 participants attended the EIA’s 45-minute webinar on Wednesday, with 10 people — including cryptocurrency miners, industry participants, researchers and one member of the public — speaking.
Bitcoin researcher Margot Paez, a doctoral candidate at the Georgia Institute of Technology and sustainability consultant at the Bitcoin Policy Institute, agreed that research needed to be conducted, but said the industry was “wary” of the EIA’s motives and suggested that an outside institution be selected to conduct the research.
Lee Bratcher, president and founder of the Texas Blockchain Council, suggested that the EIA also include traditional data centers in its survey, rather than just limiting the information request to cryptocurrency-focused data centers. The suggestion was supported by Jayson Browner, senior vice president of government affairs at Marathon Digital Holdings, who said the industry would be “skeptical” of the survey if traditional data centers were excluded from the request.
“At this point, we’re considering everything,” said Stephen Harvey, an EIA official, adding that including traditional data centers in the survey was “clearly on the table.”
Harvey said the EIA is currently in the process of developing a draft proposal that is expected to be published in the Federal Register sometime this quarter. It will then go through a 60-day comment period during which industry can respond to the proposal.
“At the end of those 60 days, we will also receive all of the information, review it, and make any adjustments based on new information that we think are necessary. We will respond to any key questions that arise in that process and file a new publication in the federal register,” Harvey said.
After that, there will be a 30-day review process, Harvey explained, after which the decision on whether the EIA can proceed with its research will be in the hands of the OMB.