The White House is working on a plan to reduce the environmental effect of Bitcoin mining
First-ever policy on Bitcoin mining is expected to be unveiled by the United States government to address issues such as energy control and climate change.
Bloomberg Law reported on June 2 that the policy proposal, due in August, would examine objections from the business, including the assertion that there is no public benefit.
Additionally, President Joe Biden issued an executive order in March directing federal agencies to encourage the responsible creation of digital assets.
Concerns about Bitcoin mining’s impact on climate change have prompted White House engagement in Bitcoin mining.
Costa Samaras, the senior assistant in the White House Office of Science and Technology Policy, indicated that the rise of cryptocurrencies as a financial system component had prompted the potential policy implementation. In the words of Samaras,
You can’t have any real impact on our financial system unless it’s designed in a responsible manner that lowers emissions.”
Digital assets must be considered in terms of climate and energy saving
The White House will consider mining noise pollution and processes like proof-of-stake (PoS) and proof-of-work when formulating its recommendations (PoW)
In the event of a move from proof-of-work to proof-of-stake or a continuous mix of proof-of-work and proof-of-stake, we need to think about what the right policy responses would be. According to Samaras, “by design, proof of work consumes a lot of energy, but it also enhances security.”
He noted that authorities are particularly interested in mining farms that allow grid operators to shut down servers when demand is high. In areas like Texas, the initiative has garnered attention.
Demands for regulation of Bitcoin mining have risen at a time when the United States is home to one of the world’s biggest crypto mining operations. The Environmental Protection Agency (EPA) has been criticised for its failure to distinguish between various types of energy use, which has prompted the need for a new policy plan.
Democrat politicians have recently called for the EPA to come down on operators because of a lack of legislation to control energy use and carbon emissions.
An increasing amount of Bitcoin mining in the United States has been seen as putting further pressure on the country’s energy infrastructure due to harsh weather, old wiring and rising usage of renewable energy.