Chief Assistant Director for Energy of the Office of Scientific and Technical Policy of the White House Costa Samaras said that the White House is developing regulations aimed at reducing energy consumption in cryptocurrency mining.
Following a March executive order by U.S. President Joe Biden requiring federal agencies to ensure “responsible” mining of digital assets such as cryptocurrency, the White House Energy Team is preparing a report on energy consumption.
Samaras stated the importance of cryptocurrency mining becoming part of the US financial system in any meaningful way, so that its development takes place responsibly, and overall emissions are minimized. He further noted that digital assets should be considered in the context of the conversation about climate and energy.
The White House energy team plans to evaluate everything from local noise pollution to the energy efficiency of various mining methods, comparing bitcoin’s Proof-of-work method to Proof-of-Stake, which is used by other cryptocurrencies, overtaking the first energy efficiency method by more than 99%.
As Samaras said, the team will remain impartial when gathering information:
We need to think about the best policy measures in the event of switching to proof of share or a continuous mixing regime of both methods, proof of work and proof of share.
Earlier, President Biden issued an executive order titled “Ensuring the Responsible Development of Digital Assets.” It raises the question of whether the existing legal framework is sufficient to ensure a reliable executive branch and the work of an independent agency, which hints at further development of new legislation.
The US presidential decree is the first attempt by the White House to develop a coordinated plan for the regulation and development of digital assets. It represents an important first step towards a coherent regulatory policy.
The executive order sets out such goals as protecting U.S. consumers, investors, and businesses, maintaining the stability of the U.S. and global financial systems, preventing illicit financial activities and national security risks, and strengthening U.S. leadership in the global financial system, and technological competitiveness.
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