What happened?
Two Democratic Senators, Sheldon Whitehouse and John Fetterman, have introduced a bill called the “Clean Cloud Act of 2025” targeting emissions from crypto mining. The legislation seeks to impose fines on facilities using non-renewable energy sources by 2035 and requires annual reporting of energy consumption and emissions by data centers and mining facilities. The goal is to increase transparency and reduce emissions in these industries.
Who does this affect?
The proposed bill will primarily affect crypto mining operations and AI data centers across the United States. These facilities will have to comply with new emissions caps and reporting requirements, particularly those consuming over 100 kilowatts of power. The legislation also indirectly impacts residential electricity consumers, as penalties from violators will be used to fund reductions in household energy costs.
Why does this matter?
This legislation could have a significant market impact by influencing the operational costs of crypto mining and AI data centers. By enforcing stricter emissions standards and imposing fines, the act could drive shifts toward renewable energy sources among these energy-intensive industries. Additionally, the bill might face political challenges, notably from Republican opponents and stakeholders in the crypto industry, such as the Trump family, who have vested interests in U.S.-based crypto mining operations.