- Federal government scraps emergency Bitcoin mining survey amid legal pressure from industry players
- EIA has agreed to destroy the data it has collected so far to put an end to all lawsuit
The federal government has abandoned its emergency survey of the Bitcoin mining industry’s power usage following legal action from Riot Platforms and the Texas Blockchain Council.
The survey, intended to gather information on the energy consumption of U.S. Bitcoin mining companies, was retracted after Riot Platforms, a leading miner, and the Texas Blockchain Council filed a lawsuit citing “administrative overreach” by the U.S. Energy Information Administration (EIA).
The survey, which gave mining firms a short window to respond or face fines, was met with resistance from industry players.
The Texas Blockchain Council and Riot Platforms secured a temporary restraining order, leading to the cancellation of a scheduled hearing after reaching an agreement with the EIA.
As part of the agreement, the EIA will destroy any information already collected from the survey and replace the notice issued in early February with a new Federal Register notice inviting comments and feedback.
The new notice will initiate a 60-day comment period, during which the EIA will consider feedback before proceeding with the survey.
The EIA’s attempt to expedite the survey under the guise of an “emergency” measure was met with skepticism, with industry players arguing that normal clearance procedures should be followed.
Critics questioned the rationale behind the survey, citing Bitcoin’s rising price as a potential motivator for increased mining activity and subsequent energy consumption.
The EIA’s estimated completion time of 30 minutes for the survey was deemed “extremely inaccurate” by the court.
The TBC and Riot contested this estimation, asserting that the actual compliance time has exceeded 40 hours. Nonetheless, both parties have consented to the EIA issuing a new notice for a two-month public feedback period on the information it can gather.
Both the Texas Blockchain Council and Riot Platforms welcomed the end of the emergency survey, expressing optimism about restarting the survey process with proper consideration for industry feedback and regulatory provisions.
The agreement marks a significant development in the ongoing dialogue between government agencies and the cryptocurrency mining industry regarding energy usage transparency and regulatory compliance.
