Biden administration’s infamous Bitcoin mining investigation halted due to legal backlash
The U.S. Energy Information Administration (EIA) has agreed to suspend emergency investigations into Bitcoin miners as part of an agreement to end lawsuits filed by several industry players, including the Texas Blockchain Council. I did.
According to a March 1 court filing, EIA must destroy all investigative information it has already received and any information it has not yet received. Additionally, the data must be quarantined or kept confidential until it is destroyed.
The controversial survey aimed to collect data on how much energy miners use. But the industry responded with a lawsuit claiming the probe would cause “irreparable harm” to its operations by forcing miners to disclose “confidential information.”
contract conditions
As part of the settlement, EIA will publish a new notice in the Federal Register to start the investigative process over again. This means we are rescinding and replacing our previous notice from February 9, which did not solicit comments and feedback.
The new notice must allow for a 60-day comment period, after which EIA may conduct a survey subject to certain statutory and regulatory provisions.
EIA must also consider the new notice and any comments submitted in response to the February 9 notice as if they had been submitted in the new notice.
EIA and the other defendants will pay an additional $2,199.45 to the plaintiffs (Riot Platforms and Texas Blockchain Council) to cover legal costs and fees.
Controversial Investigation
EIA began collecting data on mining companies in late January after the Office of Management and Budget (OMB) approved an emergency request for the investigation. The controversial investigation is closely tied to the Biden administration’s policies, particularly energy policies outlined in the Inflation Reduction Act of 2022.
The agencies are concerned that Bitcoin mining could accelerate alongside price increases, leading to greater energy consumption during periods of high demand and cold weather.
Republican Rep. Tom Emmer expressed opposition to the investigation on February 22. In addition to denying that Bitcoin mining poses a threat, Emmer pointed out that the EIA justified the investigation on the basis of an emergency policy but failed to introduce a mandatory comment period.
Industry officials including Riot Platforms, the Chamber of Digital Commerce, and the Texas Blockchain Council filed a lawsuit challenging the findings, and the court issued a temporary stay until March 24. Permitted.
Following the legal action, EIA paused its data collection attempts a day later, on February 24.
