Elizabeth Warren demands data on crypto mining in Texas

Elizabeth Warren demands data on crypto mining in Texas

Elizabeth Warren demands data on crypto mining in Texas

  • Elizabeth Warren and other Democrats have called for information about the impact of mining Bitcoin and other cryptocurrencies on the state’s power
  • A letter from Warren requests information on CO2 emissions, subsidies and the stability of the electricity grid.
  • The letter is addressed to the Electric Reliability Council of Texas (ERCOT), which operates the state’s electric grid

Democrats Demand Data

Democrats call for crypto mining. A letter released Oct. 12 from Elizabeth Warren and seven other government officials is demanding financial and operational information on crypto mining in Texas. The letter is addressed to Pablo Vegas, executive director of the Electric Reliability Council of Texas (ERCOT), responsible for the operation of Texas’ independent power grid. In particular, the letter requests information on the impact of bitcoin mining on climate change, carbon
emissions and the stability of the Texas power grid. It is also asking for details of any subsidies ERCOT may have given to mining companies.

ERCOT offers abatement agreements, which means companies are paid to reduce electricity consumption during peak periods. One mining company, Riot Blockchain, made $9.5 million from subsidies in July 2022, but made just $5.6 million from bitcoin sales that month. Warren’s letter suggests that crypto miners have flocked to Texas due to the state’s cheap electricity and lax regulation, raising concerns about the strain on the Texas power grid and an unreliable energy market.

The letter estimates that Texas is responsible for a quarter of all Bitcoin mining. Currently, large miners consume 2 gigawatts of energy, “enough to power twice as many homes in the city of Houston,” the letter said. He warns that Bitcoin mining could generate an additional 5-6 gigawatts of demand over the next 12-15 months. In addition to Senator Elizabeth Warren, Senators Sheldon Whitehouse and Edward J.

Markey also signed the letter. Congressmen Katie Porter, Jared Huffman, Al Green and Rashida Tlaib also signed the letter. All of these people are members of the United States Democratic Party. Warren has been critical of cryptocurrencies in the past. and last year made harsh statements about the technology, comparing it to drugs and snake oil.

In July 2021, he began criticizing Bitcoin’s power consumption. This year he urged at least two government agencies to regulate cryptocurrency mining more aggressively.

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