Bitcoin Mining Policy Being Researched By The Biden Administration

The current presidential administration is looking into regulations of proof-of-work (POW) cryptocurrencies with the goal being to curb its environmental footprint and energy consumption, according to a report from Bloomberg Law.

Their journalists are said to have spoken with the principal assistant director for energy for the White House Office of Science and Technology Policy, Costa Samaras, who dropped dome hints at the upcoming policy recommendations.

“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,” Samaras reportedly said. “When we think about digital assets, it has to be a climate and energy conversation.”

This isn't the first time the government is eyeing crypto regulation with President Biden calling for a coordinated effort to regulate and research the crypto market back in March. The reports from this order were to be published within 120-180 days with multiple groups in the government working in tandem to help guide the current administration in an industry they are so woefully unknowing of.

The Energy Department did not make comments on PoW-based cryptocurrencies, according to the report. This is strange as they oversee many of the energy standards being discussed. Samaras shed light on the matter.

“We need to think about what would be the appropriate policy responses under a world that shifted to proof-of-stake, or a world that has some continuous mix of proof-of-work and proof-of-stake,” Samaras said. “Proof-of-work is energy-intensive by design, but it also increases security.”

Another report pertaining to the other energy consumption concerns like emissions, energy efficiency, and noise pollution is expected to be unveiled this August in accordance with the previously mentioned timeline of the executive order.

This current administration has been the most aggressive towards the crypto industry, after a surge and drops at the beginning of the 2020s. On one hand, it’s good for consumer protection in the long run. A worry of those in the space is that the government understands little about how these systems work and may be too harsh when it comes to implementing regulations, impeding the industry’s growth as other bigger problems rage underneath this country’s surface.