Bitcoin (BTC) miner companies listed on the US exchange are taking another hit after new legislation from the United States. Listed companies will soon have to share data about their energy consumption, and this is a sensitive point for bitcoin miners.
The United States House of Representatives recently passed a new law on sustainability. If the Senate also agrees to this, listed companies will be obliged to disclose their ESG metrics. These letters stand for environmental, social and governance. Three pillars that are important to maintain corporate social responsibility.
The bill that focuses on sustainable finance requires the Securities and Exchange Commission (SEC) to set up an advisory committee. The idea is that the committee will become permanent and that it will be called the ‘Sustainable Finance Advisory Committee’. The climate and the aforementioned ESG will become increasingly important to the SEC and rules that companies must adhere to will follow. According to Chinese crypto journalist Colin Wu, this will accelerate the transition of bitcoin mining companies:
The Effects on Bitcoin
The high energy consumption of bitcoin mining has been a point of discussion for years. In recent months, the topic has become such a problem that it is almost a daily topic of conversation. That the focus in the U.S. now that the focus is even more on sustainability, the BTC price will not benefit.
The price problems started with an infamous tweet from Elon Musk, in which he stated that Tesla would no longer accept BTC because of the excessive energy consumption. After reporting last week, however, it seems that it is precisely Musk himself who can also partly solve the problems. For example, he announced that Tesla would accept bitcoin again when 50% of its energy consumption comes from renewable energy sources.
So there is plenty of work to be done, but as soon as mining continues on renewable energy, there seems to be a future in bitcoin and other cryptocurrencies.
The market has been a long way from its all-time high, but there is definitely still some positivity to be found. Thus, according to Three Arrows Capital CEO Su Zhu, the bull market is not over at all. He sees the low price as an opportunity for latecomers to still get in. Words that hopefully will also be followed.