The Energy Information Administration’s (EIA) mandatory emergency survey of electricity consumption data represents the latest in a politically motivated campaign against bitcoin mining, cryptocurrency, and U.S.-led innovation. We believe this should cause concern for all industries that rely on data centers as part of their operations.
Lee Bratcher is a board member and president at the Texas Blockchain Council. Perianne Boring is founder and CEO of the Chamber of Digital Commerce.
Politicization of Energy Regulation
Instead of focusing on improving our aging electricity infrastructure and working to ensure grid stability, the Department of Energy and EIA have prioritized taking unprecedented steps to target private businesses for political purposes. This action is an abuse of authority in order to further the Biden administration’s public aim “to limit or eliminate” U.S. bitcoin miners, while pleading ignorance to U.S. miner’s utilization of renewable resources and uniquely flexible operations.
The survey asks for information that goes beyond the typical requests made by the EIA. For decades the EIA has conducted itself as an apolitical information gathering body within the Department of Energy (DOE). Had this survey been in-line with previous surveys, there would be no cause for alarm.
Targeting Bitcoin Miners
However, this survey is specifically targeting bitcoin miners and asking for private information such as the name of the energy company with which the miner has signed power purchase agreements. It is not a logical leap to be concerned about the Biden administration putting pressure on those energy providers to discontinue their business with bitcoin miners.
Thanks to bitcoin miners’ ability to rapidly adjust their data centers’ power usage according to grid conditions, their operations are the most flexible and responsive electrical loads in the nation. It is well known that they offer critical grid stabilizing benefits to the communities in which they operate.
Financial Impact
The White House has been clear that they desire to “to limit or eliminate” bitcoin miners from operating in the United States. Although the Bitcoin network is resilient against potential bans, the administration is seeking to make the lives of bitcoin miners, their employees and local communities too difficult to bear operating in the United States. This is deeply concerning.
It should be of concern to any industry in the United States that consumes energy. If an administration has political points to score by fabricating a crisis to justify removing access to the electricity, then an entire industry can be taken down on a whim.
We strongly believe EIA has overstepped its authority in issuing this emergency mandate. We urge the Biden administration to reconsider this course of action. Until that time, the industry will be pursuing all legal resources available to us.