Large Coalition of Public Interest and Environmental Groups Come Together to Urge Leaders to Address Climate Damages of Crypto
70+ organizations send letter to congressional leadership detailing how crypto mining is exacerbating the climate crisis
WASHINGTON – Today, the Open Markets Institute joined with 73 public interest, environmental, and racial justice organizations to send a letter calling on Congress to take steps to mitigate cryptocurrency’s climate destruction when developing legislative and regulatory action for the industry.
The letter cites the extreme levels of carbon emissions, energy consumption, and electronic waste generated by cryptocurrency usage, production, and mining. It specifically notes the impacts of the deeply energy-intensive “Proof of Work” process used by the two largest cryptocurrencies, Bitcoin and Ethereum.
Research mentioned in the letter highlights the detrimental impact cryptocurrency mining is already having on local communities such as Seneca Lake, New York, and Limestone and Jonesborough, Tennessee through environmental destruction, noise pollution, and plummeting property value.
"In New York, Greenidge LLC has purchased a once-shuttered coal fired power plant and repurposed it to burn gas to mine Bitcoin and is now set to emit over a million tons of CO2 equivalents every year. Congress must act swiftly to regulate this industry if the U.S. wants to be seen as a climate leader," said Yvonne Taylor, co-founder and vice president, Seneca Lake Guardian, a Waterkeeper Affiliate.
“Cryptocurrency’s destructive impact on the environment is just another example of how corporations in a financialized economy will stop at nothing to create profits for investors, and how communities of color will ultimately pay the price. Cryptocurrencies and their miners rely on harmful fuels like coal that produce toxic emissions linked to asthma, cancer, acid rain, and climate change. In doing so, cryptocurrency is exacerbating decades of environmental racism and fueling climate chaos,” said Erika Thi Patterson, Action Center on Race and the Economy.
“In addition to causing massive climate and toxic air pollution, that consumption is driving up utility bills for working families and putting dangerous strain on our grid—and it's projected to get even worse unless Congress takes action. Leaders in Congress must take steps to limit the pollution generated by crypto mining and ensure the stability of America’s power supply,” said Lena Moffitt, Evergreen Action campaigns director.
"It is beyond absurd that, as we speak and as the climate crisis only deepens, fossil fuel power plants are having their lives extended and even reopened in order to virtually 'mine' cryptocurrency. At a time when financial regulators ought to be doing everything possible to help tackle the climate crisis, it's clear that the status quo of letting bitcoin and other cryptocurrency miners pollute our climate and communities at an exponential rate is unsustainable, unwise, and in need of urgent action," said Patrick Drupp, Sierra Club Deputy Legislative Director.
“Crypto mining is polluting communities and fueling the climate crisis by wasting staggering amounts of power. Congress should step up and address those harms, not give the industry a free pass,” said David Arkush, managing director of Public Citizen’s climate program.
“Cryptocurrency’s harmful impacts threaten to undermine any progress Congress is making on climate change. We urge Congress to develop cryptocurrency reform legislation—for the sake of both a healthy climate and a sustainable economy,” said Doug Norlen, Director of the Economic Policy Program at Friends of the Earth US.
“As the Biden administration works to mitigate climate catastrophe, many cryptocurrency mining operations are making the problem worse,” said Alexis Goldstein, director of financial policy at Open Markets Institute. “When considering legislation on cryptocurrencies, Congress should keep the climate impacts front of mind.”
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Download the letter here or read the full letter below.
