In a letter to Environmental Protection Agency (EPA) Administrator Michael Regan, the House Financial Services Review panel has asked Mr. Regan to meticulously explore the significant ecological effects of virtual property mining, including any positive uses, before contemplating environmental legislation. The letter was given a signature by 12 of their workmates.
U.S. House Committee Sees Good in Virtual Currencies
The letter is a response to one that several House members sent in April 2022, which misrepresented a lot of facts and data about mining of virtual currencies. The latter letter gave some information that the House Financial Services Review panel believes were not entirely researched.
It also highlights the majority of virtual currency mining activities rely on clean energy sources. However, it makes the case that several mining companies “employ other sources of power, including energy resources that otherwise might go underutilized.”
The committee acknowledges that digital currencies could have a positive impact on the economic prowess of the US.
How Will It Impact the Environment?
“As you are aware, a significant amount of the energy used by virtual currency miners is alternative energy. Many extractors also employ extra power providers, such as natural gas, that can often go wasted. One business that is collaborating with gas and oil companies to help the environment through bitcoin extraction is JAI Energy in Wyoming,”the letter stated.
Per the House committee, BTC mining emits flared gases that in turn reduce methane gas emissions in states such as Texas, Colorado, Ohio, West Virginia, New Mexico and North Dakota. The representatives also believe mining of virtual assets can stabilize electricity systems. It can be swiftly turned off during periods of high demand.
Senators Bill Hagerty, Kevin Cramer, and Steve Daines were among the Republican politicians who signed the letter; they were also Republicans. The letter to EPA director House Representatives Patrick McHenry also authorized Regan, Pete Sessions, Bill Posey, Bill Huizenga, Andy Barr, Anthony Gonzales, Brian Steil, William Timmons, and Ralph Norman.
The Republicans’ appeal to Regan contrasted with a letter written by 22 members from both parties in April to the EPA. They expressed “factors increase the risk” about cryptocurrency businesses that operate in the US, alleging that these businesses generated greenhouse gas emissions and did not follow the Clean Air Act or the Clean Water Act.
The April statement to Regan showcased the idea that mining crypto causes hazardous effects to the environment.
The Bitcoin extraction Council reacted to the April letter with its own in May, claiming that many of the legislators’ assertions about mining were false. Later, several environmental organizations, notably Greenpeace and the Sierra Club, pushed the Biden administration’s federal agencies to adopt novel strategies regarding cryptocurrency extraction.