U.S. Lawmaker Criticizes Government Overreach on Bitcoin Mining Data Collection

Table of Contents

• Emmer Questions EIA’s Emergency Powers and Lack of Due Process
• Litigation and Criticism of EIA’s Claims
• Ongoing Scrutiny of Government Policies on Mining

Emmer Questions EIA’s Emergency Powers and Lack of Due Process

Representative Tom Emmer (R-MN), the Republican Whip of the House Financial Services Committee, has publicly criticized the approval granted by the Office of Management and Budget (OMB) for the Energy Information Administration’s (EIA) controversial data collection order targeting Bitcoin mining firms. In a February 22^nd letter addressed to the OMB, Emmer expressed concerns about the lack of normal clearance processes between the two agencies and questioned whether an actual emergency exists to warrant bypassing standard procedures.

As the lawmaker tweeted, “Bitcoin mining does not pose a threat to public safety. What criteria did OMB use to determine this was an ’emergency’ and what precedents are there for an emergency info request with potential criminal penalties for noncompliance?” Emmer maintains that the permissionless and open nature of Bitcoin mining technology aligns with American values of freedom and is crucial for securing the blockchain network underlying Bitcoin and other cryptocurrencies.

Litigation and Criticism of EIA’s Claims

Emmer’s letter comes as the cryptocurrency community has rallied behind criticism of the EIA move. The Texas Blockchain Council and Bitcoin mining firm Riot Platforms have also filed a lawsuit against the EIA challenging the legality and basis of the data collection order. As the community expressed support, “Miners secure the blockchain and provide a valuable service. Attempts to curb mining amount to an attack on cryptocurrency itself.”

The EIA had contended their request was due to concerns that a rise in Bitcoin prices could lead to increased mining activity and higher electricity usage. However, Emmer questions this rationale, asserting that Bitcoin mining does not realistically pose a threat to public safety. The lawmaker further seeks clarification on the process followed and protection of sensitive data if collected under the emergency order, which threatens criminal penalties for non-compliance.

Ongoing Scrutiny of Government Policies on Mining

This is not the first time government agencies have faced pushback over their approaches targeting the cryptocurrency industry. Previously, the White House had floated a proposed 30% tax on electricity consumption aimed specifically at Bitcoin miners. With government agencies now directly collecting operational data from miners, Emmer argues normal standards of review must be upheld to protect businesses. As scrutiny over the EIA’s actions increases, lawmakers will continue demanding transparency and justification from regulators over any policies seen as excessively overbearing on the growing cryptocurrency sector.

The post U.S. Lawmaker Criticizes Government Overreach on Bitcoin Mining Data Collection appeared first on Althalla.