Texas Blockchain Council and Riot Platforms File Lawsuit Against U.S. Department of Energy Over Regulatory Scrutiny
The Texas Blockchain Council (TBC) and Riot Platforms have taken legal action against the U.S. Department of Energy (DOE), its Energy and Information Administration (EIA), and the U.S. Office of Management and Budget (OMB) in response to what they perceive as unwarranted regulatory scrutiny from the Biden Administration towards the cryptocurrency sector, particularly regarding energy consumption.
In a lawsuit filed in the U.S. District Court for the Western District of Texas on February 22, TBC and Riot Platforms argue that the EIA’s emergency collection of information from TBC members, including Riot Platforms, violates legal standards. They claim that these actions breach the Paperwork Reduction Act and its regulations, accusing the EIA and OMB of acting without due process, similar to accusations previously directed at the SEC for its regulatory actions.
Legal Challenge Against Government Actions
The core of the lawsuit centers around allegations that the government’s methodology is a combination of “sloppy government process” and “invasive government data collection” without proper justification or procedural adherence.
- The EIA announced last month its intention to gather data on electricity consumption from select U.S.-based crypto-mining operations starting in early February.
- The OMB swiftly approved an emergency data collection request on January 26, requiring commercial miners to disclose their energy usage details.
Concerns Over Data Collection
TBC has expressed concerns about providing detailed operational information, such as machine types and mining facility locations, as it could potentially expose the industry to further scrutiny and targeting. These fears are supported by previous statements from The White House.
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 annul the OMB’s approval of the data collection effort, arguing for a halt to any data gathering without proper notice and an opportunity for public comment.
Rising Resistance Within the Crypto Industry
This lawsuit is part of a broader pattern of resistance within the crypto industry against perceived regulatory overreach. Figures like House Majority Whip Tom Emmer have publicly criticized the Biden administration’s stance on Bitcoin mining and the cryptocurrency industry, accusing it of abusing its power.
Recent legal actions, such as those by Lejilex and the Crypto Freedom Alliance of Texas (CFAT) against the SEC, further highlight the growing discontent within the industry towards regulatory pressures.
Hot Take: Crypto Industry Fights Back Against Regulatory Scrutiny
The Texas Blockchain Council (TBC) and Riot Platforms have filed a lawsuit against the U.S. Department of Energy (DOE), its Energy and Information Administration (EIA), and the U.S. Office of Management and Budget (OMB) in response to what they view as unwarranted regulatory scrutiny targeting the cryptocurrency sector, particularly in relation to energy consumption.
The legal challenge alleges that the EIA’s emergency collection of information from TBC members violates legal standards, accusing the EIA and OMB of acting without due process. This lawsuit represents a broader trend within the crypto industry, where resistance against perceived regulatory overreach is growing.
As figures like House Majority Whip Tom Emmer criticize the Biden administration’s stance on Bitcoin mining and cryptocurrencies, it is clear that industry players are fighting back against what they consider to be an abuse of power. Recent legal actions by other organizations against regulatory bodies further highlight the industry’s discontent with increasing regulatory pressures.
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