A United States court has issued a temporary suspension on a directive from the Energy Information Administration (EIA), which mandated Bitcoin miners’ participation in a compulsory survey. The decision, rendered by Judge Alan Albright, prohibits the EIA from compelling the Texas Blockchain Council and its members to provide survey responses and prevents the collection and sharing of any data, including previously obtained information, for a period of four weeks.
EIA Administrator Joseph DeCarolis announced the agency’s voluntary suspension of the survey until March 22, assuring that non-respondents would not face penalties before March 25. However, Judge Albright emphasized that a mere declaration was insufficient to allay concerns about potential enforcement actions beyond the specified date or from other defendants. The judge also pointed out that the announcement did not address the compliance costs associated with the survey.
The temporary suspension follows a lawsuit filed by Riot Platforms and the Texas Blockchain Council against the Department of Energy‘s scrutiny of energy consumption by crypto miners. The EIA had initiated the survey to assess electricity usage by selected U.S. crypto mining companies, authorized as an “emergency collection of data request” by the Office of Management and Budget (OMB).
DeCarolis, from the EIA, expressed the agency’s commitment to continue analyzing the energy implications of U.S. cryptocurrency mining activities, emphasizing the evolving energy demand, identification of high-growth areas, and the electricity sources utilized by miners.
The lawsuit by Riot Platforms and the Texas Blockchain Council criticized the EIA’s survey as a “sloppy government process” and an example of “invasive government data collection.” The court ruled in favor of the plaintiffs, finding the EIA’s rationale for emergency data collection insufficient and suggesting a likelihood of success in proving the defendants’ actions arbitrary and capricious.
This legal challenge reflects broader concerns within the cryptocurrency sector over regulatory scrutiny, particularly regarding energy consumption. The plaintiffs argue that the EIA and OMB’s actions violate the Paperwork Reduction Act by collecting information without due process. The lawsuit poses a significant challenge to regulatory pressures from the Biden Administration on the crypto industry, focusing on the legitimacy and methodology of the government’s data collection efforts.
Against the backdrop of the ongoing debate over cryptocurrency’s environmental impact, a recently surfaced email exchange purportedly between Satoshi Nakamoto and Martti ‘Sirius’ Malmi provides historical insight. While the authenticity of these emails remains unconfirmed, they reveal early discussions about Bitcoin’s energy consumption. Contrary to contemporary critiques, Satoshi anticipated that Bitcoin would be more energy-efficient than traditional banking systems. Satoshi argued that even if Bitcoin were to consume substantial energy, it would likely be less wasteful than the existing financial system, given its reliance on physical infrastructure and marketing practices.