According to Charles Hoskinson, regulators are going to negotiate with crypto companies to change the way they mine

Cardano CEO warns of threat to bitcoin amid White House’s proposals

10.09.2022 - 09:00

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2 min

What’s new? The head of the Cardano blockchain Charles Hoskinson has warned that new recommendations by the US government will not bring anything good to bitcoin and other crypto assets. He explained that a new White House Office of Science and Technology Policy report urging federal agencies to create environmental standards for mining could lead to a complete ban on bitcoin.

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What else does Hoskinson say? The White House report suggests miners reduce greenhouse gas emissions with the involvement of the Environmental Protection Agency (EPA) and the Department of Energy (DoE).

According to Hoskinson, the EPA and DoE are going to start negotiating with cryptocurrency companies to make changes to the way they mine cryptocurrencies. He added:

“And which way? Well, these should include, ‘Standards for very low energy intensities, low water usage, low noise generation, clean energy usage by operators and standards that strengthen over time for additional carbon-free generation.”

And if those measures prove ineffective, Congress could consider legislation restricting or eliminating the use of high-energy consensus mechanisms for crypto-asset mining. Hoskinson added that, in other words, this could be perceived as a likely ban on bitcoin.

What is known about Cardano? Cardano is a blockchain platform created by Input Output Hong Kong (IOHK) and Ethereum co-founder Charles Hoskinson in 2017. Cardano supports smart contracts and also has the native token ADA that enables users to participate in the operation of the network. As of September 10, at 09:05 UTC, ADA is trading at $0,51, having gained 3,54% overnight, according to Binance. The asset ranks 8th in the list of cryptocurrencies by market capitalization with a figure of $17,1 billion.

In June, the New York State Senate approved a two-year moratorium on PoW mining. The ban would apply to mining using non-renewable energy sources. The bill must be signed by the governor to go into effect.

In August, members of the US House of Representatives from the Energy and Commerce Committee requested environmental impact data from four mining companies: Core Scientific, Riot Blockchain, Marathon Digital, and Stronghold Digital. All of them are publicly traded.

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