Only One Thing Certain On New Crypto Legislation: It's Going To Keep Jacking Up Energy Demand, Climate Damage
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While some economists say the GENIUS Act will have the opposite effect of its intended goals, bringing economic chaos and the next global financial crisis, environmental advocates say the bill will supercharge a destructive industry no matter its impact on the financial system. “The more that crypto currency generally is legitimized and used, the more crypto mining there will be,” said Mandy DeRoche, deputy managing attorney for Earthjustice’s clean energy program.
Mining is the most common method for authenticating or generating new cryptocurrency, such as Bitcoin. It involves powerful computers that work around the clock running endless series of random numbers before hitting upon the correct code. Every time a Bitcoin miner’s computer successfully guesses a transaction code, the miner receives a limited number of newly minted Bitcoins.
As both cryptocurrency’s popularity and the complexity of its codes for new coins have grown, the industry’s energy demands have skyrocketed. As much as 2.3 percent of all U.S. electricity consumption went to cryptocurrency mining in 2022, according to the federal Energy Information Administration. Many of the mines are sited in small towns and rural areas. “They’re billion-dollar corporations that just come in, bully [and] steamroll local communities,” said Jackie Sawicky of the National Coalition Against Cryptomining. “There’s almost no oversight.”
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Neither Gillibrand’s nor Booker’s office responded to a request for comment about the continued allowance for cryptocurrency mining under the GENIUS Act. Most cryptocurrency, including Bitcoin, which controls more than 60 percent of the global crypto market, relies on mining. Environmental advocates say any growth in the industry through stablecoin will simply drive additional mining. Amanda Wick, the founder and chief executive officer of the Association for Women in Cryptocurrency, said in an interview with C-SPAN on Wednesday that the majority of stablecoins are minted through mining.
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https://insideclimatenews.org/news/16072025/genius-act-cryptocurrency-legislation-environmental-impact/