U.S. state and federal lawmakers, as well as federal regulators, are increasingly focusing on the role of blockchain and distributed ledger technology in ongoing efforts to combat climate change and to facilitate the transition from carbon-based fossil fuels.
There have been several key developments in the recent weeks at the state and federal level, covering two broad categories:
(1) Initiatives targeting carbon emissions associated with data mining operations, including New York State legislation to temporarily halt certain carbon-powered cryptocurrency mining operations and a U.S. Senate bill calling on federal agencies to report on the impact of such mining operations on energy markets; and
(2) Efforts to enhance the integrity and transparency of energy markets and related digital assets, particularly at the CFTC, which has solicited input from various industry players on the role of digital assets in mitigating climate risks, including in the voluntary carbon market.
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