Crypto Mining Firms Win Lawsuit Against Energy Information Administration

The Energy Information Administration (EIA) recently halted a controversial survey of crypto mining companies after facing a lawsuit from Riot Platforms and the Texas Blockchain Council. These organizations filed a lawsuit against the EIA, the Department of Energy, the Office of Management and Budget (OMB), and the heads of those agencies. As a result, the EIA announced that they would not enforce the filing requirement or impose fines on companies that did not respond to the survey until March 22, 2024. They also agreed to sequester any data collected during the survey period.

Republican Congressman Tom Emmer expressed concerns about the data collection practices of the EIA in a letter dated February 22. He argued that the OMB should not grant emergency approval for data collection without a comment period unless there is a clear threat to public safety. Emmer specifically stated that Bitcoin mining does not pose a threat to public safety, refuting claims made by the EIA. The lawsuit brought forward by Riot and the Texas Blockchain Council echoes Emmer’s sentiments, calling the emergency approval and the notion of public harm “facially absurd.”

The survey initiated by the EIA has been linked to the Biden administration and the Democratic Party. The lawsuit highlights a statement from the White House in September 2022, which hinted at potential energy limitation actions and laws targeting mining firms. The EIA’s primary concern revolves around the energy consumption associated with Bitcoin mining, particularly during periods of high energy demand. Initially, the EIA intended to gather data from 82 crypto-mining companies, imposing daily fines of $10,000 on non-compliant organizations until the survey period concluded in July.

The lawsuit filed by Riot Platforms and the Texas Blockchain Council has effectively paused the EIA’s survey of crypto mining firms, raising important questions about data collection practices and government oversight. As the debate surrounding the environmental impact of cryptocurrency mining continues, it is crucial for regulatory bodies to strike a balance between industry innovation and public interest. The outcome of this lawsuit will likely have far-reaching implications for the future of crypto mining regulation in the United States.