Bitcoin mining companies and associations, led by the Texas Blockchain Council (TBC) and Riot Platforms, have initiated legal action against several United States government agencies. This lawsuit marks a significant pushback against what is perceived as the Biden Administration’s excessive regulation of the cryptocurrency industry. The legal battle targets the U.S. Department of Energy (DOE), the Energy Information Administration (EIA), and the Office of Management and Budget (OMB), alleging unlawful actions and regulatory overreach.
Legal Battle Unfolds
The lawsuit, filed in the U.S. District Court for the Western District of Texas on February 22, seeks both declaratory and injunctive relief. The plaintiffs argue that the emergency information collection conducted by the EIA, which affects many TBC members including Riot Platforms, is illegal. They further contend that both the EIA and the OMB have breached the Paperwork Reduction Act and its regulations, accusing these agencies of arbitrary and capricious action akin to that of the SEC, thus violating the Administrative Procedure Act.
Allegations of Improper Data Collection
The filing criticizes the government’s process, describing it as “sloppy” and characterized by “contrived urgency” and “invasive data collection.” The plaintiffs are asking for a temporary restraining order and a preliminary injunction. This would prevent the DOE and EIA from gathering data from specific commercial cryptocurrency miners and seek to annul the OMB’s approval of this data collection, demanding that no data be collected without proper notice and a chance for comment.
Industry and Political Backlash
The controversy stems from the OMB’s rapid approval of an emergency request by the EIA to collect comprehensive energy usage data from 82 Bitcoin mining operations. Critics, including House Majority Whip Tom Emmer, have voiced strong opposition to this move, accusing the Biden administration of abusing its power and unfairly targeting the cryptocurrency industry.
A Broader Fight Against Regulatory Overreach
This lawsuit is part of a broader resistance against regulatory encroachment on the crypto industry. Recently, Texas-based Lejilex and the Crypto Freedom Alliance of Texas also challenged the SEC, accusing it of overstepping its regulatory bounds. These legal challenges underscore the growing tension between the cryptocurrency sector and federal regulators, highlighting concerns over privacy, industry autonomy, and the scope of government oversight.
