The whole crypto industry is under great pressure for several months. Between bear market and sector regulation projects, the crypto ecosystem is now operating on the razor’s edge. The situation should get worse with climate issues. This, given that the companies mining are singled out for their significant contribution to greenhouse gas emissions.
Forcing the hand of mining companies
Besides the imbroglio caused by the fall of FTX, the crypto industry will also have to find solutions to limit CO emissions.2 related to its activities. If she doesn’t, the US Congress is preparing to force her hand.
In effect, a group of eight Democratic senators seized, Tuesday, February 7, the State Department for Energy and the Environmental Protection Agency (EPA). They want to encourage these public entities to put in place a legal mechanism that would oblige crypto mining companies to disclose data relating to the carbon dioxide emissions generated by their activities.
The procedure follows investigations carried out by parliamentarians. They reveal that the crypto industry would be the source of significant greenhouse gas emissions into the atmosphere. This, in defiance of US environmental protection laws and US climate commitments.
The proposed measure has a very specific objective. It is a question of setting up a lever which will make it possible to better control the extent of the emissions. This lever will have to allow the application of sanctions, in particular taxes to the companies which infringe the rules.
Can the procedure succeed?
The chances of such a measure seeing the light of day are not negligible. Parliamentarians are indeed taking advantage of the current circumstances of the crypto industry to have this standard adopted.
But it is important to remember that the crypto industry has a very powerful lobby. His strategy explains in particular why, for more than a decade, the crypto ecosystem has managed to function without the intervention of central power.
Nothing says that such a provision will be put in place. It must nevertheless be recognized that the wind of reform currently blowing on the crypto market could well make the balance think in favor of such a device.
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