The White House Office of Science and Technology Policy (OSTP) reviewed the environmental and energy impacts of crypto assets in the United States and found that crypto contributes significantly to energy use and greenhouse gas (GHG) emissions. We recommend monitoring and regulation accordingly.

Released on September 8, the report is the latest release from U.S. President Joe Biden’s March Executive Order (EO) on the development of digital assets. EO studies energy use related to digital assets, compares that use to other energy expenditures, explores the use of blockchain technology to support climate protection, and assesses the environmental impact of digital assets. tasked OSTP with making recommendations for minimizing or mitigating

According to the study, crypto assets use about 50 billion kilowatt-hours of energy in the United States annually, or 38% of the global total. Lack of monitoring made accurate energy calculations impossible. However, the report upholds the tradition of making creative energy-use comparisons, arguing that cryptocurrencies are slightly more energy-intensive than home computers and less than home lighting and refrigeration in the United States. says. moreover:

“A direct comparison of Visa, MasterCard and American Express combined is complicated. […] Consuming less than 1% of the electricity Bitcoin and Ethereum used in the same year, despite processing many times the number of on-chain transactions and supporting broader enterprise operations. is. ”

High energy use will wear down grids and drive up energy prices, the report said. The role of proof-of-work staking in the energy consumption of crypto-assets has been clearly pointed out, and the changing use of consensus mechanisms and the rapid evolution of the field have also made it impossible to predict future energy use. There was a fact that

RELATED: White House office seeks public opinion on crypto-climate impact

In any case, the report states, “Crypto asset mining that uses grid power emits greenhouse gases unless the mining uses clean energy.” The report also provided examples of the use of blockchain technology to distribute energy and support environmental (carbon) markets. While this report considered several strategies to improve the energy use of crypto-assets, such as the use of stranded methane, other strategies such as diversion of incidental crypto-mining heat were not considered. did.

Straight out of the White House OSTP – “Crypto-asset mining, which installs equipment to use emitted methane to generate electricity for operations, is likely to help rather than hinder US climate goals.” .” @thetrocro @jyn_urso @DS Batten

— David Zell (@DavidZell_) September 8, 2022

The report’s recommendations are broadly written:

“Federal agencies should provide technical assistance and initiate collaborative processes with states, communities, the cryptocurrency industry, and others to develop effective, evidence-based environmental performance standards.”

Other recommendations include assessing and implementing energy reliability in light of cryptocurrency mining projects, setting energy efficiency standards, and research and monitoring.

The OSTP report is one of five reports due in the same week. The Justice Department, he released a report on strengthening international law enforcement mandated by an executive order in June, and the Treasury Department, he reported on a framework for international engagement in July.