- Bitcoin miners challenge mandatory data disclosures.
- The issue centers on defending the rights and interests of crypto participants.
- Senator Elizabeth Warren was singled out for leading the anti-crypto charge.
The US Energy Information Administration (EIA) recently sent mandatory data requests to Bitcoin miners, stoking fears about privacy invasion and confiscation, akin to the gold seizures enacted in 1933. The Texas Blockchain Council (TBC) and Riot Platforms have launched legal action against the EIA, striking back to protect the industry against what they deem “governmental overreach and politically motivated administrative actions”
Bitcoin Miners Fight Disclosure Demand
The TBC and Riot Platforms began legal proceedings against the EIA on February 22, challenging what they term an “unprecedented and illegal data collection demand” against Bitcoin miners.
This follows the EIA’s mandatory data disclosure on Bitcoin miners, which sought sensitive operational information including specifications of machines used, locations of operations, and contractual details with energy partners. As Dennis Porter, the co-founder of the Satoshi Action Fund, stated, miners had just 10 days to comply otherwise they would “face huge fines or worse.”
According to the TBC, satisfying the EIA’s data requests risks exposing Bitcoin miners’ operations and business partnerships. The organization views this as a targeted effort lacking regulatory grounds or emergency justification. Instead, the TBC alleged that the surveys demonstrated political bias against the broader cryptocurrency industry.
“The EIA's actions represent an alarming precedent of government intrusion into private industry operations without just cause or proper process. It's evident that this survey is not about grid stability, as bitcoin miners are the most flexible load on any grid, but is a targeted political effort led by figures like Elizabeth Warren,” stated Lee Bratcher, TBC president.The TBC clarified that the legal challenge is not about resisting calls for information, rather, it is a defense against “a broader pattern of regulatory overreach” that will severely undermine the US crypto industry if it succeeds.
The “War on Crypto” Continues
In line with defending against anti-crypto political efforts, the Chamber of Digital Commerce (CDC) recently launched its campaign to kill the Digital Asset Anti-Money Laundering Act 2023 proposal, sponsored by Senators Warren and Marshall.
The CDC warned that the bill would hamper US financial innovation by placing unnecessary and impractical compliance burdens, leading to capital flight to friendlier jurisdictions. Worse still, the CDC believes the proposal is a thinly veiled attempt to ban crypto in the US by the backdoor.
The Digital Asset Anti-Money Laundering Act 2023 puts forward several points to tackle illicit financing through cryptocurrency, including formalizing guidance on dealing with anonymizing technologies, fortifying Bank Secrecy Act enforcement, and mandating crypto firms collect identity info on users of “unhosted wallets.”
On the Flipside
- Coinbase Commerce now only accepts payments from Coinbase accounts, and no longer from “unhosted wallets.”
- The EIA stated that the survey data is to “better inform planning decisions and educate the public,” not for nefarious reasons.
Why This Matters
The TBC’s legal challenge highlights growing tensions between the US government and the emerging blockchain industry. The demand for Bitcoin miners to disclose sensitive information devoid of public consultation underscores an administration out of control. Tied with the broader “war on crypto,” the TBC is justified in seeking legal redress.
Read about the EIA’s data mandate on Bitcoin miners here:
Bitcoin Miners Face New Reporting Rules Amid Energy Concerns
Find out more on the latest Bitcoin FUD campaign from the ECB here:
“Bitcoin Has Failed”: ECB Warns “House of Cards” Will Implode
