Lawsuit Filed by Texas Blockchain Council and Riot Platforms Challenges US Federal Agencies’ Scrutiny of Crypto Energy
The Texas Blockchain Council (TBC) and Riot Platforms have taken legal action against the U.S. Department of Energy (DOE), Energy and Information Administration (EIA), and Office of Management and Budget (OMB) in a lawsuit filed on February 22. This lawsuit is a significant response to what the plaintiffs perceive as excessive regulatory scrutiny from the Biden Administration towards the cryptocurrency industry, particularly in relation to energy consumption.
The core argument of the lawsuit is that the EIA’s collection of information from TBC members, including Riot Platforms, violates legal standards. The plaintiffs claim that these actions violate the Paperwork Reduction Act and its regulations, and accuse the EIA and OMB of acting without proper due process, similar to accusations previously made against the SEC for its regulatory actions.
The filing strongly criticizes the government’s approach, describing it as a combination of “careless government process” and “intrusive government data collection” without proper justification or adherence to procedures.
This legal action was prompted by an announcement from the EIA last month, stating its intention to collect data on electricity consumption from selected U.S.-based crypto-mining operations starting in early February. This decision followed the rapid approval by the OMB of an emergency data collection request on January 26, which required commercial miners to disclose details of their energy usage.
The TBC has expressed concerns about the request for detailed operational information, such as the types of machines used and the locations of mining facilities. There is a fear that making such information public could subject the industry to further scrutiny and potential targeting, which is supported by previous statements from The White House.
Describing the government’s initiative as a “direct attack on private businesses,” the TBC and its allies are seeking legal remedies to prevent the DOE and EIA from collecting data from identified commercial cryptocurrency miners. They also aim to invalidate the OMB’s approval of the data collection effort, calling for a halt to any data gathering without proper notice and an opportunity for public comment.
Following the OMB’s swift approval of the EIA’s request for energy usage data from 82 Bitcoin mining operations, the EIA reported a significant increase in the annual electricity consumption by crypto miners, from 0.6% to 2.3% of total usage. As a result, the EIA has declared its intention to monitor and potentially regulate energy usage associated with mining operations.
Lee Bratcher, the President of the TBC, strongly opposes the government’s oversight efforts, suggesting that the survey’s motivation is not grid stability, but rather a politically driven campaign against the cryptocurrency industry.
This lawsuit is part of a broader trend of resistance within the crypto industry against perceived regulatory overreach. Prominent figures like House Majority Whip Tom Emmer have publicly criticized the Biden administration’s stance on Bitcoin mining and the wider cryptocurrency industry, accusing it of abusing its power.
Furthermore, recent legal actions, such as those taken by Lejilex and the Crypto Freedom Alliance of Texas (CFAT) against the SEC, highlight the growing dissatisfaction within the industry regarding regulatory pressures.
