The US government is seeking public feedback on the use of crypto energy.

Crypt magazine
2 min readMar 27, 2022

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The European Union parliament has passed legislation prohibiting the use of digital assets that rely on consensus evidence of work.

Governments all across the world are becoming increasingly concerned about the amount of crypto energy consumed, and the United States is no exception.

The Office of Science and Technology Policy (OSTP), which is run by Vice President Joe Biden, is seeking public input on cryptocurrency's energy use and potential climate impacts.

President Biden signed an executive order earlier this month that many observers believe will have a significant impact on how the crypto business functions. This order directed federal agencies such as the OSTP to investigate how cryptocurrencies in general might impact the country's financial system and, at the same time, its efforts to combat climate change.

In its release, the OSTP noted that digital assets that use "proof of work" (PoW) systems frequently consume a significant amount of energy, which could pose a problem in future efforts to mitigate climate change. The release did, however, mention how this technology could be applied to environmental research.

Proof-of-work (PoW) projects use a lot of energy.

While it is no longer news that crypto projects using the PoW mechanism have been subjected to heightened scrutiny due to their "high" energy consumption, policymakers all over the world have been obliged to take action in order to better "defend" the environment.

Recently, the European Parliament considered prohibiting proof-of-work blockchains like Bitcoin, but this appears to have been ruled out, based on the announcement of the MiCA report's lead politician.

That does not, however, imply that all of the major stakeholders are on the same page. Erik Thedéen, vice-chairman of the European Securities and Markets Authority (ESMA), called for a ban on proof-of-work networks and suggested that blockchains using the consensus switch to proof-of-stake

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