Mining cryptocurrencies could hamper the country's efforts to combat climate change, the White House said in a new report.
The report from the White House Office of Science and Technology Policy is the
"Depending on the energy intensity of the technology used, crypto assets could hinder broader efforts to achieve net-zero carbon pollution consistent with U.S. climate commitments and goals," the White House office said.
Officials in the report ask the Environmental Protection Agency and the Department of Energy, among other agencies, to work with state and local officials to come up with standards for the amount of energy, noise pollution, water usage and options for carbon-free energy to help offset the impact of crypto mining. If these measures aren't effective, Congress might need to step in, according to the report.
"Should these measures prove ineffective at reducing impacts, the Administration should explore executive actions, and Congress might consider legislation, to limit or eliminate the use of high energy intensity consensus mechanisms for crypto-asset mining," the report said.
According to the report, the United States now conducts 38% of the world's Bitcoin mining, up from 3.5% in 2020. Blockchain mining as a whole takes up more energy than Argentina and Australia, the report said.
The report stops short of making specific recommendations.
The Biden administration also tells energy regulators to make sure that crypto mining doesn't threaten the stability of electric grids across the country, which could raise prices for consumers.
The amount of energy usage is likely to fall, the report said on a positive note, as more renewables come onto the grid, and that miners could reduce their energy use during peak times, which would help offset some problems. Blockchain technology could also help manage electric grids, and could help verify voluntary carbon offset transactions.
"However, other solutions might work as well or better," the report said. "The U.S. government should seek to facilitate innovation that addresses market challenges, aligns with environmental and equity objectives, and appropriately ensures customer and investor protection and market integrity."
The report comes as the Biden administration begins setting the stage for a multifaceted regulatory framework for cryptocurrency. Besides surveying the environmental and energy impacts, Treasury Secretary Janet Yellen has said that she wants to pursue "
