Crypto mining is threatening US climate efforts, White House warns

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The White House says the environmental impact of producing cryptocurrencies like Bitcoin could impede US efforts to combat climate change.

The conclusion thrusts the Biden administration into the center of an already raging debate over the carbon footprint of digital assets. Critics have been ringing alarm bells for months over the amount of electricity used in crypto mining operations.

While the White House Office of Science and Technology Policy stopped short of prescribing specific regulations, the report it released on Thursday said the US must take action to mitigate pollution tied to crypto production. The federal government should collect more data on power usage and work with states and the crypto industry to set standards, the office said.

“Depending on the energy intensity of the technology used, crypto assets could hinder broader efforts to achieve net-zero carbon pollution consistent with U.S. climate commitments and goals," the White House office said. Crypto operations in the US now use about as much energy as home computers do, according the report.

President Joe Biden ordered the study in March as part of a sweeping executive order on cryptocurrencies. In the coming weeks, other federal agencies and offices are expected to release recommendations and reports for how the US should deal with the asset class. 

The conclusions released on Thursday dovetail with the Biden administration’s focus on mitigating climate change. Since early 2021, American government agencies have launched a series of efforts related to global warming.

Creating new coins and validating transactions on the Bitcoin and Ethereum blockchains involves an energy intensive process in which multiple computers compete to solve complex math