The United States cryptocurrency mining industry has just introduced a new lobbying group dubbed the “Digital Energy Council,” aimed at enhancing the growth of digital asset mining and energy development.
On August 16, the new lobbying group took to X to announce the brand new initiative with one of its biggest goals to promote responsible and sustainable energy development regarding digital assets and seek friendly policies from US regulators and policymakers, amidst the ongoing crackdown on crypto.
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
What is the Digital Energy Council?
Touted as the “first member association solely focused on the intersection of digital asset mining and energy policy at the federal level,” the Digital Energy Council will provide digital asset miners with a unified voice in Washington.
The Digital Energy Council will advocate for various policies that promote responsible and sustainable energy development, and grid resilience, maintain the United States’ competitiveness, and protect national security.
Its official 🚨 first member association solely focused on the intersection of digital asset mining and energy ⚡️ policy at the federal level, look forward to working with digital asset and energy leaders check it out: https://t.co/kBFRkXHTNy https://t.co/kzNhtfxYZi
— Tom Mapes (@tommapes88) August 16, 2023
Following the announcement, Tom Mapes, the new organization’s founder and president, who worked on energy policy at the Chamber of Digital Commerce, also confirmed the same on X, noting, it is of utmost importance that energy and digital asset mining communities have a real voice at the federal level.
He said the association has several founding members, including crypto mining and energy firms. Mapes added,
“The focus on how both the digital asset mining and energy industries can collaborate and work together to bolster energy infrastructure, increase resilience and support energy sustainability and efficiency has been lost in policy conversations.”
Zach Bradford, the CEO of one of DEC’s member companies, CleanSpark (CLSK) explained the Digital Energy Council is the only group in Washington, D.C., that is uniquely focused on the intersection of mining and energy abundance.
Crypto Mining Continues to Draw Widespread Criticism
Over the recent past, the cryptocurrency mining industry has drawn increased scrutiny from US regulators with some state legislatures even considering proposals to restrict the industry over growing concerns about its energy use.
Earlier this year, the Joe Biden administration proposed a 30% tax on the electricity used by cryptocurrency mining operations, explaining that it wants to tax crypto mining firms because they aren’t paying for the “full cost they impose on others,” which include environmental pollution and high energy prices.
Today the CEA released a blog highlighting a new tax in the President’s budget, the Digital Asset Mining Excise Tax (“DAME Tax”), a tax equal to 30 percent of the cost of the electricity cryptominers use once fully phased in. 1/ https://t.co/944x0wVVB5
— Council of Economic Advisers (@WhiteHouseCEA) May 2, 2023
Furthermore, miners have also been facing continuous flak from Democratic lawmakers who say the companies have negative spillovers on the environment. For instance, Mandy DeRoche, deputy managing attorney for clean energy with Earthjustice, a nonprofit environmental law group, had previously raised concerns about electricity rates in areas that have to build new infrastructure to meet the demands of cryptocurrency mining.
While others claimed crypto mining activities can raise electricity prices for the people around the mining hubs and cause service interruptions.
A More Secure and Smarter Energy Future
In the wake of these criticisms, it seems, the newly formed lobbying group will spearhead policies that will foster responsible energy practices and facilitate productive discourse around the bipartisan themes of digital asset mining among its members, policymakers, and regulators.
The Digital Energy Council, further, aims to bring together thought leaders to shine a light on cryptocurrencies’ enormous potential and help steer the world towards a more secure, sustainable, and smarter energy future.
