US Bitcoin Miners Sue Biden Administration In Battle Over Regulation

On Thursday, February 22, Bitcoin miner Riot Platforms, along with industry groups Texas Blockchain Council (TBC) and the Chamber of Digital Commerce, initiated legal action against key agencies of the Biden-Harris Administration. The lawsuit targets the US Department of Energy (DOE), the US Energy Information Administration (EIA), and the Office of Management and Budget (OMB), challenging the administration's recent steps to gather detailed energy consumption data from the cryptocurrency mining sector.

The legal complaint arises from a January decision by the OMB, which approved an emergency request by the EIA to collect data on energy usage from 82 Bitcoin mining operations, including that of Riot Platforms. This move has been criticized by the plaintiffs and supported by United States Representative Tom Emmer, who allege it represents an abuse of power aimed at the crypto industry under the guise of an emergency.

They claim this action not only lacks legal justification but also imposes unfair burdens on crypto miners by compelling them to disclose proprietary energy consumption data, potentially causing irreparable harm to their businesses. Key points from the legal document include:

Violation of Legal Procedures: Accusations that the DOE and EIA failed to comply with the PRA’s requirements for public notice and comment, rendering the emergency information collection request (ICR) approval process arbitrary and unlawful.

Inadequate Justification for Emergency Collection: The plaintiffs dispute the DOE’s rationale for an emergency data collection, arguing it fails to meet established criteria for such expedited actions.

Concerns Over Confidential Information: The forced disclosure of sensitive business information under the emergency ICR is said to jeopardize the competitive positions of cryptocurrency miners.

Lack of Proper Notice and Opportunity for Comment: The filing criticizes the defendants for not providing sufficient notice or opportunity for stakeholders to comment on the information collection request, a violation of the PRA’s directives.

Request for Relief: The plaintiffs seek judicial relief to prevent the enforcement of the emergency ICR, including an order to vacate the DOE’s emergency approval of the request.