The Director of the Blockchain Association brings an important notice to crypto stakeholders.
Ron Hammond, the Director of Government Relations at the Blockchain Association, has commented on the recently published White House report on the energy implications of cryptocurrency mining.
According to Hammond, there is no active legislation in congress that seeks to ban the mining of bitcoin and other cryptocurrencies that utilize the Proof-of-Work (PoW) consensus algorithm. He added that even if Congress chooses to introduce a bill to ban crypto mining, policymakers would not have enough time to deliberate and vote on the legislation to pass it.
However, he thinks the White House report is an important wake-up call for the industry to start preparing itself before such legislation is introduced before the United States Congress.
“Just a reminder that there is no active legislation in Congress that would ban crypto-asset mining. Even if one were to be introduced today, Congress wouldn’t have enough time or the votes to pass it. Still, the White House report is an important wake-up call to the industry,” Hammond said.
Just a reminder there is no active legislation in Congress that would ban crypto-asset mining. Even if one were to be introduced today, Congress wouldn’t have enough time or the votes to pass it. Still the White House report is an important wake up call to the industry. https://t.co/S9RYvXrE4x
— Ron Hammond (@RonwHammond) September 9, 2022
Outrage Against Crypto Mining
Several nations have kicked against cryptocurrency mining, especially Bitcoin, over the years due to the energy crisis the activity causes. Aside from power issues, crypto mining is also believed to have serious environmental implications due to its enormous energy.
In a recent report, the White House noted that cryptocurrency mining causes greenhouse gas emissions via its heavy energy consumption. Per the report, crypto mining activities consumed between 120 billion and 240 billion kilowatts per year.
The report suggested that cryptocurrency miners should seek help from various U.S. agencies, including the Environmental Protection Agency. Furthermore, miners have been urged to consider adopting green crypto mining, as failure to do so could see the activity banned.
An excerpt of the report reads:
“Should these measures prove ineffective at reducing impacts, the Administration should explore executive actions. Congress might consider legislation to limit or eliminate the use of high energy intensity consensus mechanisms for crypto-asset mining.”
Moves to Prevent a Blanket Bank of Crypto Mining
The possibility of seeing a bill introduced to ban cryptocurrency mining cannot be ruled out. Crypto firms are already taking key steps to prevent such a move from happening.
Both cryptocurrency and non-governmental organizations (NGOs) have collaborated on developing carbon solutions to cushion the effect of crypto mining and other environmental threats.
As reported by TheCryptoBasic, Chris Larsen, the Chairman of Ripple, pledged $5 million to support a campaign that could prompt Bitcoin to change its code to consume less energy.