The US Department of Energy (DOE) is reportedly halting its investigation into the energy consumption of crypto mining after being sued by two companies in the sector.
According to a new report from Reuters, the DOE has agreed to temporarily halt its investigation into the amount of energy used for crypto mining after Bitcoin (BTC) mining company Riot and the Texas Blockchain Council (TBC) filed a lawsuit against it.
The Energy Information Administration (EIA) – the statistical arm of the DOE – says it will pause its data collection program nearly a month after it begins, the report said.
In the lawsuit, Riot and the Texas Blockchain Council say the DOE’s efforts to collect energy data are “unlawful.”
In addition, the plaintiffs allege that the EIA is threatening them with criminal fines and civil penalties if they do not comply with the data collection investigation.
“This is a case about sloppy government process, contrived and self-inflicted urgency, and invasive government data collection.
On January 24, 2024, Defendant EIA requested an “emergency” review and approval from OMB (Office of Management and Budget) of a planned collection of proprietary energy information from companies engaged in cryptocurrency mining…
OMB approved the request two days after receiving EIA. But in doing so, both EIA and OMB violated the Paperwork Reduction Act and its implementing regulations. They also acted arbitrarily and capriciously, in violation of the Administrative Law Act.
Despite these failures, EIA has made progress in gathering information and is requiring—under the explicit threat of criminal fines and civil penalties—that certain companies, including Riot and many other TBC members, respond to the survey by February 23, 2024. .”
The investigation was initially announced earlier this month. Joe DeCarolis, the EIA’s administrator, said at the time that the government was interested in identifying growth areas in mining and exploring the energy implications of mining digital assets.
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