Crypto mining sector now has a lobby in Washington
- DEC founder and President Tom Mapes said he sees crypto mining firms as energy companies of the future.
- The mining sector has been at the receiving end of several actions by the U.S. government over the questions of sustainability and emissions.
Representatives from the crypto mining industry established a new lobbying group on 15 August.
Called the Digital Energy Council (DEC), the Washington, D.C.-focused lobbying group claims that its goal is to clear the misconceptions of policymakers around the sustainability of mining activities. It also intends to advocate for policies that promote the growth of crypto mining and energy development.
Today we are launching the Digital Energy Council @digitalenergyUS. DEC is the first member association solely focused on the intersection of digital asset mining ⛏️and energy policy⚡ at the federal level. #digitalenergy
— Digital Energy Council (@DigitalEnergyUS) August 15, 2023
DEC founder and President Tom Mapes underscored that it’s important for both energy and digital asset mining groups to have a real voice at the policy level in the country.
Mapes previously worked as the director of energy at the Chamber of Digital Commerce. He also served as a chief of staff in the U.S. Department of Energy’s Office of International Affairs.
Mapes highlighted that it was during his stint at the Department of Energy that he came to recognize crypto mining firms as an essential part of the energy ecosystem. He said that he sees crypto mining firms as energy companies of the future.
U.S. authorities target crypto miners, not only exchanges
The crypto mining sector in the U.S. has been at the receiving end of several actions by the government over the questions of sustainability and emissions.
In March, Senator Edward J. Markey and Representative Jared Huffman announced the reintroduction of Crypto-Asset Environmental Transparency Act in the Congress. Members accused crypto miners of exploiting large amounts of power from public grids and emitting huge amounts of greenhouse gases.
The bill would require crypto mining companies to disclose emissions for operations that consume more than 5 megawatts of power. An investigation agency would be required to study and report the impact of crypto mining in the U.S.
A budget of $5 million would be allocated to the agency. It was supposed to submit the report within 18 months of the passage of the bill.
The Biden administration proposed a 30% crypto mining excise tax in March. The Digital Assets Mining Energy (DAME) excise tax proposed to charge crypto miners 10% tax of the cost of the power used for mining in 2024. It proposed increasing this tax to 30% in 2026. However, the bill didn’t make into law.
Yes, one of the victories is blocking proposed taxes.
— Warren Davidson ?? (@WarrenDavidson) May 29, 2023
For the time being, the DEC’s membership and lobbying efforts will entirely concentrate on the U.S.