Senator Warren Leads Probe on Crypto Mining Energy Usage in Texas
In a letter to Pablo Vegas, the CEO of the Electric Reliability Council of Texas, U.S. Senators–including Elizabeth Warren–have questioned the ability of the Texas power grid to operate with so many crypto miners operating on it.
“Cryptomining companies are flooding into states like Texas, a “deregulated safe harbor” that has been “aggressively courting crypto miners, who are drawn to the state’s cheap power and laissez-faire regulation,” raising concerns about the state’s unreliable electricity market and the potential for crypto mining to add to the stress on the state’s power grid,” the senators wrote.
Full Transcript Below:
ROSS MAC: The crypto capital of the US is now being seen as a deregulated safe harbor. Or at least that’s what Senator Elizabeth Warren and six other senators are calling Texas in a letter to the CEO of the Electric Reliability Council of Texas. The senators expressed concern about the “laissez-faire” regulation and cheap power that Texas offers and how that will impact the grid–which has proven to be vulnerable especially in times of intense heat or cold. The so-called Crypto Cowboys have been drawn to Texas because of the land availability and the cheaper energy. As a result, over 30 crypto mining companies now have bases there. There’s an extra layer here, where the companies also get paid by Texas regulators to pull back on their mining operations during peak energy consumption times. For example, Riot Blockchain, pocketed $9.5 million in credits this summer after a harsh heat wave put pressure on the grid. Senator Warren, in particular, has spoken out extensively against bitcoin mining and overall cryptocurrencies, and now she’s calling out the energy usage by miners and the impact it’s having on global warming. In the letter, senators ask for a handful of information related to the strength of the power grid and how the crypto cowboys will expand. What do you think?
It’s ya boy Ross Mac and that was the Crypto Minute on TheStreet.
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