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November 26, 2024 | Regulating Crypto Under Premise of Climate Change
Martin Armstrong
Governments are enacting subtle regulations over crypto. Texas has come out to demand that crypto miners report their power usage to the Electric Reliability Council of Texas (ERCOT). The state claims they need this information to regulate its volatile power grid.
Public Utilities Commission of Texas (PUCT) Chairman Thomas Gleeson stated that miners must provide all information from location, ownership, to energy output. “This is another example of the PUCT and ERCOT adapting to support a rapidly changing industrial landscape,” he said. ERCOT believes there will be a new load of 152 GW by 2030.
“The rule approved today will give the PUCT and ERCOT better awareness of virtual currency mining operations around the state, which have unique power consumption characteristics,” the commission said. “The information provided in the registration will help ERCOT manage the grid reliably as more virtual currency mining facilities connect to the grid.” Failure to register will result in a $25,000 DAILY penalty PER VIOLATION.
ERCOT already has access to energy usage meters. It is quite peculiar that they are expecting individuals to begin self-reporting. This is part of a broader trend to regulate crypto. New York, not reliant on a grid of any sort, wants 70% of its electricity to be renewable by 2030, but only about 29% of energy comes from a renewable source. The state has enacted a two-year moratorium on certain types of crypto mining, stating that they need to study the impacts that energy consumption will have on the climate. The days of having an unregulated crypto market are numbered.
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Martin Armstrong November 26th, 2024
Posted In: Armstrong Economics