Leaders of the House Committee on Energy & Commerce and its subcommittees recently forwarded correspondence to four cryptomining companies, seeking insight regarding the environmental and energy impacts of blockchain technology.
Energy and Commerce Committee Chairman Frank Pallone, Jr. (D-NJ), Energy Subcommittee Chairman Bobby Rush (D-IL), Oversight and Investigations Subcommittee Chair Diana DeGette (D-CO), and Environment and Climate Change Subcommittee Chairman Paul Tonko (D-NY) signed the letters to Core Scientific, Marathon Digital Holdings, Riot Blockchain, Inc., and Stronghold Digital Mining.
The correspondence stems from a January Oversight and Investigations Subcommittee hearing focusing on the energy impacts of cryptocurrency while questioning the adverse environmental and energy impacts of blockchains deploying a proof of work (PoW) consensus mechanism.
“Blockchain technology holds immense promise that may make our personal information more secure and economy more efficient,” the legislators wrote. “However, the energy consumption and hardware required to support PoW-based cryptocurrencies may, in some instances, produce severe externalities in the form of harmful emissions and excess electronic waste.”
PoW cryptomining facilities consume an immense amount of energy. Some of the largest companies continue to rely primarily on the electric grid, noting the circumstance could increase peak demand and revive fossil fuel generators.
“Given the existential threat posed by the climate crisis, we are deeply concerned about efforts like this that increase demand for fossil fuels, with the potential to put new strain on our energy grid,” the legislators concluded. “While blockchain technology is emerging as a potentially important tool in fighting climate change, increasing demand on the grid and burning more fossil fuels to power PoW cryptomining facilities only serves to undermine the potential climate benefits of blockchain technology and hold us back from achieving our climate pollution reduction goals.”