The Bitcoin mining sector has piqued the interest of several countries over the last year, and it appears that the United States government is starting to become interested in this market.
As a result, a hearing has been scheduled in the US to explore the ramifications of the energy consumption incurred by cryptocurrency mining operations. Indeed the Subcommittee on Oversight and Investigations of the Committee on Energy and Commerce will conduct a public hearing on the subject next Thursday, January 20, according to the House Committee.
“The Subcommittee on Oversight and Investigations of the Committee on Energy and Commerce will hold a hybrid hearing that includes both in-person and remote attendance on Thursday, January 20, 2022, at 10:30 a.m.”
The investigation is titled “Clearing Cryptocurrency: The Energy Implications of Blockchains,” and in particular, the Subcommittee is interested in learning about the energy consumption of blockchains, with the premise that they may create environmental concerns in the future. On the scheduled day, the hybrid hearing will also live stream on YouTube.
What is the Committee on Energy and Trade
The American Committee on Energy and Trade was established in 1795 and is a long-standing organization linked with the United States Congress.
For most of its existence, this group has been tasked with debating topics pertaining to international commerce, public health, and the market interests of the world’s leading economies.
Following the development of an energy committee in recent years, the committee has started to address the use of energy in corporate operations.
Notably, investors are being pushed to progressively adopt funds that hold more sustainable companies under the Environmental, Social, and Governance (ESG) umbrella rather than investing in fossil fuel operations as a result of the continuous emphasis on climate change.
In this case, the organization is keeping tabs on the re-entry of miners to the US following China’s crackdown on cryptocurrency mining in 2021, which led to more profitable mining.
Congress’ energy subcommittee to discuss cryptocurrency
Bitcoin has gone through a lot of ups and downs in its short existence of just 13 years; however, one of the most recent efforts to discredit this technology is predicated on the fact that it is energy-intensive.
Proponents of Bitcoin argue those who oppose digital currency have not considered the costs of technology compared to the conventional banking system or the energy required to transport paper money across the globe.
Meanwhile, they consider Bitcoins as a worldwide currency that functions in a decentralized manner and is not under the jurisdiction of any one government.
US crypto mining growth
In response to the rapid expansion of US mining businesses after China’s mining prohibition, the local mining industry organized the formation of a Mining Council in 2021, which is overseen by the likes of Michael Saylor and Elon Musk.
Given that several of these businesses are already publicly traded on the New York Stock Exchange, unlike the corporations that do business in Asia nations, the prohibition will not be implemented in the United States as it was in China.
That being said, the public hearing will nonetheless result in the development of a number of measures against cryptocurrency mining in the United States, a nation that is already being examined for stronger regulations in this space.