The White House supports encryption rules that favor mining-based consensus mechanisms
The White House joined Controversy over U.S. cryptocurrency regulations On Thursday expressed support for an amendment to the Infrastructure Investment and Employment Act (IIJA), which supports a consensus mechanism based on mining rather than an alternative solution.
NBC Finance Channel Report On Thursday, the White House Deputy Press Secretary Andrew Bates issued a report on the amendment proposed by US Senators Rob Portman (R-OH), Mark Warner (D-VA) and Kyrsten Sinema (R-WY). An unexpected statement to clarify cryptocurrencies-the relevant terms they wrote in the current version of IIJA.
Bates said in the statement: “The government is pleased with the progress of the compromise supported by Warner, Portman, and the cinema to advance the bipartisan infrastructure package and clarify measures to reduce tax evasion in the cryptocurrency market.” That report.
On Wednesday, US Senators Ron Wyden (D-OR), Cynthia Loomis (R-WY) and Pat Toumi (R-PA) proposed an amendment that preceded Warner-Portman -Sinema amendment.The amendment Attempt to relax IIJA restrictions After being criticized by industry and privacy advocates, regarding the issue of cryptocurrency.
So far discuss At the center of the amendment is the Warner-Portman-Sinema proposal, especially the abandonment of certain rules that help to rely on cryptocurrency miners to maintain a proof-of-work consensus mechanism for the integrity of a given platform. The Wyden-Lummis-Toomey amendment has similar exceptions, but it also extends to the proof-of-stake consensus mechanism.
Both mechanisms have their advantages, but the proof-of-work reliance on crypto mining makes it an energy-intensive process, which is why environmental impact Mining Bitcoin and other cryptocurrencies Receive more attention In recent months. The proof-of-stake consensus mechanism should rely on less power.
The Warner-Portman-Sinema Amendment provides a government-approved safe harbor for the most climate-destructive form of encryption technology (called proof of work). Advancing this amendment is wrong for both climate and innovation. https://t.co/Ppn5BpoYSXAugust 6, 2021
By using renewable energy to promote cryptocurrency mining to become more sustainable——nuclear power, Hydropower, and Volcanic energy These are some recent examples-some mining operations have sought to offset their environmental impact by Contribute to clean energy projects.
But there is no way to guarantee that the proof-of-work consensus mechanism will use clean energy, so even if cryptocurrency mining does switch to renewable energy, it may continue to be criticized for requiring more electricity than the proof-of-stake method. (or even shareProof of space and time. )
Senate Majority Leader Charles Schumer pushed for a vote on the IIJA on August 7th, hoping to pass legislation this weekend. Hill Report, So the debate around the cryptocurrency provisions of the bill may end sooner or later.