The Cryptocurrency World Strikes Back: Bitcoin Companies Sue US Government Agencies

A group of Bitcoin miners and industry organizations have filed a lawsuit against the U.S. Department of Energy, the Energy Information Administration (EIA), and the Office of Management and Budget (OMB), alleging that they illegally collected confidential information from BTC mining operations.

The plaintiffs, who include Riot Blockchain, the Texas Blockchain Council, and the Digital Chamber of Commerce, allege that federal agencies violated the Paperwork Reduction Act, Administrative Procedure Act, and Privacy Act by requesting data on the energy consumption, location, and capacity of Bitcoin mining facilities.

The case stems from OMB's decision in January 2024 to grant an emergency request to collect data from 82 Bitcoin miners that EIA said was necessary to assess the impact of BTC mining on the U.S. energy system and the environment.

The Bitcoin industry has also faced opposition from some state and local governments, which have imposed bans or restrictions on BTC mining due to its high energy consumption and potential impact on the power grid. New York State passed a law requiring BTC miners to undergo an environmental review and obtain a permit before operating in the state. The law also allows local governments to impose a moratorium on Bitcoin mining until 2025.

*This is not investment advice.

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