Biden Administration To Release Study On Bitcoin Mining, Wants Miners To Cut Down Their Carbon Footprint

The Biden administration is looking into policy recommendations to lower the energy consumed by cryptocurrency mining and reduce the carbon footprint related to the entire process.

Most critics of the crypto industry have expressed concerns regarding cryptocurrency mining, saying the activity poses a threat to the U.S. climate goals and strains the power grid. To elevate the concerns regarding the same, the Biden administration will release a draft on Bitcoin mining.

“It’s important, if this is going to be part of our financial system in any meaningful way, that it’s developed responsibly and minimizes total emissions,” Costa Samaras, principal assistant director for energy for the White House Office of Science and Technology Policy, told Bloomberg Law. "When we think about digital assets, it has to be a climate and energy conversation."

According to the report, the study will be published by August and will be a step toward crypto following the executive order released in March this year.

The team responsible for conducting the study will assess everything from local noise pollution to the energy efficiency of using different mining techniques and also compare the proof-of-work (PoW) consensus to proof-of-stake (PoS) on the basis of their energy consumption and efficiency.

Currently, it is unclear if the Biden administration will take any action basis the recommendations.