House Majority Rep. Tom Emmer accused the Biden administration of abusing its power to unfairly target Bitcoin miners, a key sector of the $2 trillion cryptocurrency industry.
Emmer, a Republican, sent a letter to the Office of Management and Budget (OMB) earlier this week. In the letter, he asked for answers about the agency's recent approval of an urgent request from the Energy Information Administration (EIA), the Department of Energy's analytical unit. In the request, 82 Bitcoin mining companies were asked to share private information about their energy consumption.
OMB, which is responsible for approving information collection requests from federal agencies, is now under review. Emmer argues that the request exceeds the EIA's administrative authority. He points out that while the term “emergency” was used in requesting the information, no evidence was presented that BTC mining poses a threat to public safety.
The letter also raised concerns in Congress. The letter appears to violate the standard protocols of the Paperwork Reduction Act, which requires federal agencies to seek public comment on proposed information collection.
Bitcoin mining companies are under pressure right now. If they fail to comply with the request for information, they face criminal and civil penalties, including fines of up to $10,000 per day. Companies are required to provide this information monthly by the end of July.
Emmer expressed his concerns in an interview with FOX Business, saying:
“Forcing Bitcoin miners to share private information or otherwise face criminal sanctions is problematic in itself, but the decision to evade normal permitting procedures for such an 'experimental and temporary' maneuver is completely unacceptable. OMB's abuse of emergency powers requires an explanation.”
*This is not investment advice.