US Senator Blasts Crypto’s Environmental Impact, Warns Of Impending Reckoning

During a recent congressional hearing on climate change, Senator Sheldon Whitehouse, member of the Democratic Party, delivered a message regarding the alleged environmental impact of crypto mining. He asserted that the industry is exacerbating climate issues and cautioned that a reckoning is on the horizon.

Calls For Accountability In Crypto And AI

In April, Senator Whitehouse, alongside fellow Democrat John Fetterman, introduced the Cloud Act, legislation aimed at establishing emissions standards for artificial intelligence (AI) and cryptocurrency mining facilities. The goal is to utilize the resulting revenues to help consumers lower their utility bills while investing in clean energy.

Eleanor Terret reported on social media platform X (formerly Twitter) that Whitehouse urged industry leaders to consider the implications of their actions on everyday electricity consumers. “Think about what you’re doing to regular consumers of electricity nearby,” he stated.

Whitehouse also stressed on the importance of reflecting on the potential consequences of their choices, warning that they risk pushing society further down a troubling climate path.

Senator Ron Wyden, the panel’s ranking member, expressed his gratitude to Whitehouse for his remarks, while Senator Marsha Blackburn dismissed Whitehouse’s statements as irrelevant.

Attention Shifts To Clarity Act

Whitehouse has been vocal about the alleged strain that energy-intensive data centers and crypto mining operations place on the power grid. He noted that these facilities contribute to rising electricity costs for consumers, hinder access to power for homes and businesses, and increase fossil fuel emissions. 

“The good news is that we don’t have to choose between leading the world on AI and leading the world on climate safety,” he remarked. He believes that technology and AI companies have the financial resources to invest in clean energy alternatives, thereby preventing further strain on local grids.

The Clean Cloud Act aims to direct the Environmental Protection Agency (EPA) to set emissions performance standards for data centers and crypto mining facilities with an installed IT power capacity exceeding 100 kilowatts. 

These standards would be based on regional grid emissions intensities and would decrease annually by 11%. The legislation also proposes penalties for emissions that exceed the set standards, starting at $20 per ton of CO2 equivalent, with annual adjustments for inflation.

Despite the urgency expressed by Senator Whitehouse, progress on the Clean Cloud Act remains stalled as Congress shifts its focus to the Clarity Act. 

This market structure bill intends to clarify the regulatory landscape for digital assets by defining the roles of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), categorizing digital assets, and establishing new protections for developers in the decentralized finance (DeFi) space.

Featured image from DALL-E, chart from TradingView.com