Pennsylvania House Representative Removes Two-Year Crypto Mining Ban from Bill
A Pennsylvania House Representative has removed a two-year ban on crypto mining from a bill aimed at regulating the sector’s energy consumption. The decision came after the representative claimed that trade labor unions had pressured him to make the change. On October 16, the Pennsylvania House Environmental Resources and Energy Committee passed the Cryptocurrency Energy Conservation Act by a narrow margin. The bill had seen no progress since its introduction to the Committee in June. The Committee’s chair and bill sponsor, Democratic Representative Greg Vitali, explained that he was pressured by Democratic Party leaders to exclude the moratorium.
Trade Labor Unions’ Influence on Environmental Policy
Representative Vitali stated that building trade labor unions had significant influence over his Democratic colleagues and that voting against them would risk the Democratic majority in Pennsylvania’s House. He believed it was better for the bill to pass without the moratorium than not at all, given the lack of support for strong environmental policies. The two-year ban would have halted approvals for new and renewed permits for crypto mining facilities. Instead, the revised bill includes an impact study on miner operations and new reporting requirements.
New Reporting Requirements for Miners
Under the revised bill, miners in Pennsylvania must submit information on their mining sites’ number and size, energy sources, emissions reports, and energy and water consumption within six months. Pennsylvania-based miners will need to submit these reports annually, while new miners entering the state must provide the same report before commencing operations.
The Presence of Crypto Miners in Pennsylvania
Crypto miner Stronghold Digital Mining has established operations in Pennsylvania, purchasing two coal-burning power plants with plans to utilize waste energy for Bitcoin mining. The company previously sought approval to burn shredded tires to generate up to 15% of its energy needs, which faced opposition from local environmental groups. Additionally, Bitcoin mining firm TeraWulf operates a nuclear-powered site in Pennsylvania.
Hot Take: Labor Unions Influence Crypto Mining Regulation in Pennsylvania
The removal of the two-year crypto mining ban from the bill in Pennsylvania highlights the influence of trade labor unions on environmental policy and regulation. Representative Greg Vitali’s decision to exclude the moratorium was driven by pressure from Democratic Party leaders, who feared risking their majority in the House. This compromise allows the bill to move forward with an impact study and reporting requirements for miners. The presence of crypto mining operations in Pennsylvania, including those utilizing coal and nuclear power, underscores the challenges of balancing environmental concerns with the growth of the crypto industry.
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