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Odaily Translator | Nian Yin Si Tang

Summary:

Summary:

- The White House encourages broad-based policies to reduce greenhouse gas emissions and urges U.S. crypto mining companies to use clean energy.

- The report's recommendations highlight the need to limit the "use of high energy-intensive consensus mechanisms in cryptoasset mining" if other efforts to mitigate environmental impacts fail.

A copy of the White House Office of Science and Technology PolicyReportReport

The report was sponsored by an executive order earlier this yearauthorizedauthorized

Published, calling for efforts to minimize the environmental impact of crypto assets.

Government agencies such as the Environmental Protection Agency "should provide technical assistance and initiate a collaborative process with states, communities, the cryptoasset industry, and other interested parties for the responsible design, development, and use of environmentally friendly cryptoassets." technology to develop effective, evidence-based environmental performance standards."

The proposed standards focus on clean energy use, low water use and low energy intensity, the report said.

“If these measures prove ineffective in reducing environmental impact, the government should explore executive action and Congress may consider legislation to limit or eliminate the energy-intensive consensus mechanisms used in cryptoasset mining,” the report states, referring to proof-of-work (PoW) consensus, which is currently used by Bitcoin and other digital assets to create the next block of transactions on the network. Miners who create a block receive a subsidy (currently 6.25 bitcoins) and transaction fees, but the process is highly energy-intensive.

Miners run specialized mining machines around the clock, and they make a profit when the proceeds from producing blocks exceed the cost of buying electricity and other resources. In recent years, a number of such crypto companies have popped up in the U.S., with bitcoin mining operations flocking to North America, especially in Texas. The U.S. share of global bitcoin mining has risen from 3.5 percent in 2020 to 38 percent now, the report added.

This could hinder America's "climate commitments and goals," the report said.

The growth has also sparked skepticism, most notably in New York, where lawmakers advanced and passed a two-year statute calling for the moratorium on some crypto mining operations. The bill has yet to be formally signed into law by New York Gov. Kathy Hochul, while officials including New York Mayor Eric Adams have called for it to be vetoed.

Other recommendations in the White House report include more comprehensive data collection on energy use in crypto mining and the development of "energy-efficient standards for crypto asset mining equipment, blockchain and other operations."

In March, President Joe Biden signed an executive order seeking to develop a broad strategy for the U.S. government to regulate the crypto industry, including mining.