, 2022-05-18 21:00:07,
Today at POLITICO’s Sustainability Summit, the Commodity Futures Trading Commission (CFTC) Chair Rostin Behnam, when asked about digital assets in the context of environmental sustainability, said there is a “…clear dislocation between the usage and generation that’s needed to mine these coins and the sort of economic output that we’re seeing from digital assets themselves. That may rebalance over time, but right now it’s clearly skewed.”
The CFTC is one of the key U.S. regulators that is regularly considered as potentially being a primary regulator of digital assets at the federal level, particularly as legislation in Congress is being formed to regulate the industry. The CFTC Chair made these focused comments on the energy usage of Bitcoin after describing how his agency would host the first-ever ‘Voluntary Carbon Markets Convening’ on June 2nd as well as announcing an upcoming request for public comment on regulating the markets for trading carbon offsets and carbon derivatives.
“I would give credit to a lot of folks in the industry – not all but many – [who] are starting to recognize this issue and starting to think about different ways of mining. You may be familiar with these terms ‘proof-of-work’ vs. ‘proof-of-stake’ and these are just methods of mining coins…proof-of-work becomes a lot more energy intensive than proof-of-stake and a lot of these coders are starting to work toward proof of stake,” said Behnam.
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