Bill Overview
Title: Crypto-Asset Environmental Transparency Act of 2022
Description: This bill establishes greenhouse gas emission reporting and related requirements for certain crypto-asset (e.g., Bitcoin) mining operations.
Sponsors: Rep. Huffman, Jared [D-CA-2]
Target Audience
Population: Individuals working in or directly associated with crypto-asset mining operations
Estimated Size: 500000
- The bill targets the crypto-asset mining industry, which is a global industry dominated by a relatively small number of large operations but also includes a wide array of smaller players.
- The transparent reporting requirement may influence both the operation and profitability of entities involved in cryptocurrency mining.
- Given the global nature of cryptocurrency mining, many operators are based outside of the US; however, the US is a significant location for such operations.
- Environmental consequences of crypto mining, such as energy consumption, have international ramifications, affecting widespread environmental policy and regulation.
Reasoning
- The Crypto-Asset Environmental Transparency Act of 2022 targets a specific segment of the population—those directly involved in or associated with crypto-asset mining operations. This segment is small compared to the general population, which means the policy will directly affect a limited number of people.
- The policy will primarily impact key stakeholders in the crypto-mining industry, including owners and operations managers of mining setups who will need to comply with new environmental reporting requirements. This could create both administrative burdens and additional costs.
- Workers directly employed in these mining operations, such as IT staff, maintenance workers, and facility managers, might not see a direct immediate impact in terms of wellbeing; however, the long-term sustainability and economic viability of their employment might be indirectly affected.
- Given the environmental focus of the policy, it may also indirectly affect local community members in areas concentrated with crypto mining, potentially leading to environmental benefits possibly not captured immediately in wellbeing scores but accruing over time.
- The budgetary limits defined for the policy are significant within the specific context but need to be understood in terms of the extended scope and scale of crypto operations both nationally and globally.
- There may be a small peripheral impact on individuals indirectly involved, such as those in related industries like power supply and local service providers.
Simulated Interviews
Crypto Mining Operation Manager (Texas)
Age: 47 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 5.0 years
Commonness: 2/20
Statement of Opinion:
- The new reporting requirements will certainly increase operational transparency.
- I'm concerned about the additional administrative costs.
- There might be an opportunity to market ourselves as an environmentally conscious operation.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 7 |
| Year 2 | 6 | 7 |
| Year 3 | 7 | 7 |
| Year 5 | 7 | 7 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 6 |
Environmental Scientist (New York)
Age: 29 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 20.0 years
Commonness: 4/20
Statement of Opinion:
- This policy is a step toward greater accountability in crypto mining.
- It's likely to highlight areas needing significant improvement in terms of emissions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 9 | 5 |
| Year 20 | 9 | 5 |
Tech Entrepreneur (California)
Age: 40 | Gender: male
Wellbeing Before Policy: 8
Duration of Impact: 10.0 years
Commonness: 3/20
Statement of Opinion:
- Operating costs could increase in the short term.
- Investors might view our transparent operations positively in the long run.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 8 |
| Year 2 | 7 | 8 |
| Year 3 | 8 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 9 |
Retired (Kentucky)
Age: 65 | Gender: female
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 4/20
Statement of Opinion:
- I'm hopeful this will lead to cleaner air.
- It's a small victory for communities near these facilities.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Electrician (North Dakota)
Age: 34 | Gender: male
Wellbeing Before Policy: 6
Duration of Impact: 3.0 years
Commonness: 5/20
Statement of Opinion:
- More regulation could mean more job security if mining stays local.
- There might also be a cut in hours if operations relocate.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 5 | 6 |
| Year 2 | 5 | 6 |
| Year 3 | 6 | 6 |
| Year 5 | 6 | 6 |
| Year 10 | 6 | 5 |
| Year 20 | 6 | 5 |
Student (Florida)
Age: 22 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 10.0 years
Commonness: 6/20
Statement of Opinion:
- This sets a precedent for future energy policies.
- Might encourage more environmentally focused tech research.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 7 | 6 |
| Year 2 | 7 | 6 |
| Year 3 | 8 | 6 |
| Year 5 | 8 | 6 |
| Year 10 | 8 | 7 |
| Year 20 | 8 | 7 |
Regulatory Compliance Officer (Washington)
Age: 55 | Gender: female
Wellbeing Before Policy: 7
Duration of Impact: 15.0 years
Commonness: 5/20
Statement of Opinion:
- The policy aligns with broader governmental goals.
- It could streamline compliance across industries.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 7 |
| Year 5 | 9 | 7 |
| Year 10 | 9 | 7 |
| Year 20 | 8 | 7 |
Software Developer (Wyoming)
Age: 31 | Gender: male
Wellbeing Before Policy: 7
Duration of Impact: 10.0 years
Commonness: 5/20
Statement of Opinion:
- This could influence the direction of future protocol developments.
- There's potential for innovation in eco-friendly tech solutions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 8 | 7 |
| Year 2 | 8 | 7 |
| Year 3 | 9 | 8 |
| Year 5 | 9 | 8 |
| Year 10 | 9 | 8 |
| Year 20 | 9 | 8 |
Power Plant Manager (Nevada)
Age: 52 | Gender: male
Wellbeing Before Policy: 5
Duration of Impact: 5.0 years
Commonness: 3/20
Statement of Opinion:
- Increased reporting might lead to higher energy demand management needs.
- Could encourage investments in sustainable energy solutions.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 5 |
| Year 2 | 6 | 5 |
| Year 3 | 6 | 5 |
| Year 5 | 7 | 5 |
| Year 10 | 7 | 5 |
| Year 20 | 7 | 5 |
Crypto Trader (Colorado)
Age: 26 | Gender: female
Wellbeing Before Policy: 6
Duration of Impact: 1.0 years
Commonness: 7/20
Statement of Opinion:
- I anticipate more informed decision-making based on ecological impacts.
- May lead to volatility in crypto markets initially.
Wellbeing Over Time (With vs Without Policy)
| Year | With Policy | Without Policy |
|---|---|---|
| Year 1 | 6 | 6 |
| Year 2 | 6 | 6 |
| Year 3 | 7 | 6 |
| Year 5 | 7 | 6 |
| Year 10 | 7 | 7 |
| Year 20 | 7 | 7 |
Cost Estimates
Year 1: $15000000 (Low: $10000000, High: $20000000)
Year 2: $18000000 (Low: $12000000, High: $23000000)
Year 3: $20000000 (Low: $15000000, High: $25000000)
Year 5: $22000000 (Low: $16000000, High: $28000000)
Year 10: $25000000 (Low: $18000000, High: $30000000)
Year 100: $30000000 (Low: $20000000, High: $35000000)
Key Considerations
- The compliance burden on small crypto mining operations might lead to market consolidation potentially reducing innovation.
- Initial implementation costs and compliance monitoring could be high, but long-term benefits could outweigh these initial expenses.
- Possible pushback from industry stakeholders against increased regulatory oversight.