If the bill by Senators Cynthia Lummis and Kirsten Gillibrand to regulate cryptocurrencies is approved in the United States (USA), the energy consumption of Bitcoin mining will have to be subject to annual analysis by a office of the government of that country, in order to avoid energy waste and promote the use of renewable sources.
This is suggested by the project itself Responsible Financial Innovation Lawwhich was presented this Tuesday before the United States Senate by the senators, where the obligation for said agency is clear, that you will have to report “the amount of energy used by mining and staking cryptocurrencies”.
To that end, the agency will have to work in conjunction with the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC). It will be from society that they will carry out a study that analyzes issues related to energy consumption in the digital asset industry.
If the law is approved, the intention to regulate Bitcoin would join the efforts of the White House, which has already floated the idea of establishing a position on the environmental impact and energy consumption of mining.
Cryptocurrency mining, like other mining activities, can be an energy-intensive job. It is important to study this issue to determine the best ways we can harness this technology to help us get closer to our common climate goals by deploying more clean, renewable energy and reducing energy waste..
What are the points to analyze?
In the document available at websites of the US senators, details the points that the aforementioned commissions would have to analyze to present the report to Congress no later than December 31 of each year after its entry into force.
First of all, it must analyze and report on the consumption that, in itself, had of the bitcoin mining in the year. They also mention the energy consumption of staking, used by the Proof-of-Stake consensus algorithm to validate transactions.
Then, the commissions will have to study the effect of that energy consumption on electricity prices at the national, regional and local levels.
Also should analyze the use of renewable energy sources, including the use of non-renewable sources, “that would otherwise go to waste.” In addition, they will have to compare the energy consumption of the digital asset market “with the financial services industry and the economy as a whole.”
In the end, US government commissions will need to promote a process “to make available to the public information on energy consumption, including energy sources and quantity, and, if appropriate, recommendations to Congress to establish such a process.” ».
The annual analysis of a United States government entity on the energy consumption of mining could help regulators understand that it is a clean activity, which is currently carried out with 58% green energy, according to suggests the Bitcoin Mining Council (BMC).
Likewise, they could find that mining uses less than 0.1% of global energy, as outlined in the report by the financial analyst and strategist, Lyn Alden, who highlights that the activity does not represent a problem, as has been said in the past, coincidentally, by US congressmen.
The analysis will also help to know the impact of the Bitcoin mining companies that are based in that country, which is the one that more hash rate or computing power it houses, which gives it a certain relevance in the ecosystem, because it contributes more than any other country to the existence of this decentralized network.