The new US Securities and Exchange Commission bill will require cryptocurrency mining companies to report their greenhouse gas emissions – how will it affect mining?
This week, the U.S. Securities and Exchange Commission (SEC) issued a bill requiring companies to report information on their greenhouse gas emissions and the potential risks of their activities related to climate change.
The SEC proposal would require publicly traded companies to officially report greenhouse gas emissions from their operations and the energy they consume.
This new proposal could pose a risk to cryptocurrency mining companies, due to its high energy consumption. However, some of the main players in the industry have stepped forward and pointed out that they are not worried and which, in fact, could be beneficial for the industry, as it will promote the use of clean and renewable energy.
How will this proposal affect cryptocurrency mining companies?
As we have said, some of the major companies in the sector have already indicated that they are not concerned about the proposal. For example, Fred Thiel, CEO of Marathon Digital, one of the largest listed mining companies, which aims to become carbon neutral by the end of 2022, has indicated that he is in favour of this proposal and believes that it will offer a Greater transparency for its investors and customers.
The SEC proposal will also force mining companies to be more responsible with the environment and start using renewable energy. This will help investors identify those that comply with legal environmental standards.
Following the exodus of miners from China, the US has become the world capital of cryptocurrency mining and the debate on the impact of activities on the environment has come to the fore. In this sense, the Environmental Conservation Committee The New York Assembly yesterday approved a bill to ban cryptocurrency mining for the next two years.
An opportunity for renewable energy
The SEC's bill proposal is not final and will remain open for public comment for the next two weeks, at the end of which the agency will begin working on the final draft.
If passed, the SEC bill will require companies to disclose all processes related to the climate-related risk management and how those risks could affect their financial statements.
Companies will also be required to provide varying levels of information on their emissions. In Phase 1, they will have to report emissions from direct greenhouse gas emissions from facilities and sources controlled or owned by the company. Phase 2 is the indirect emissions associated with electricity consumption, gas and other energy sources. Finally, Phase 3 includes the emissions produced at each step of the supply chain.
