Clean Cloud Act Raises Crypto's Carbon Footprint 👣
Senate bill mandates net-zero emissions by 2035, threatening Trump's crypto ambitions and squeezing an already bleeding industry
Bitcoin miners have a new existential threat, and it's not China, hashrate competition, or even plummeting profits. It's climate change.
The Clean Cloud Act, introduced on April 10 by Senators Sheldon Whitehouse and John Fetterman, delivers an ultimatum to the entire mining industry: switch to 100% renewable energy by 2035, or face penalties that could make mining not economically feasible.
What does this legislation demand?
Regional emissions caps based on Department of Energy transmission studies
11% annual reduction in allowable emissions until zero in 2035
Affects all mining operations consuming more than 100 kilowatts
Annual EPA reporting requirements with detailed electricity disclosures
Inflation-adjusted fines for non-compliance
Prohibition against passing costs to customers
The fines fund consumer electricity subsidies and renewable projects.
"Energy-hungry data centres and cryptomining facilities are overloading our already strained power grid," Senator Whitehouse stated in his announcement.
This comes at a time when US President Donald Trump has been actively positioning US dominate Bitcoin mining since taking office in January. Adding to this push, his sons are launching their mining venture, further solidifying the administration's commitment to making US a global leader in cryptocurrency mining.
This couldn't land at a worse moment for an industry already gasping for air.
Bitcoin's tumble from its $109,000 January peak to the $84,000 range has miners barely covering electricity costs. Transaction fees have cratered, block rewards have halved, and profit margins have never been thinner.
"Most miners were looking at $40 as their worst-case scenario," Luxor CEO Nick Hansen told DL News — referring to the hashprice, a key profitability metric that's become a nightmare indicator.
Add Trump's own 131% tariffs on Chinese mining equipment, and you've got a perfect storm before environmental regulation even enters the picture.
Who Gains? Who Bears the Cost?
Potential Beneficiaries
Miners already using renewable energy (hydroelectric in the Pacific Northwest, solar in the Southwest)
Larger operations with capital to invest in green infrastructure
Mining pools with geographically diverse operations
Clean energy companies eyeing mining partnerships
Likely Disadvantaged
Small to mid-sized operations dependent on grid power
Mining startups without capital for green transitions
Mining operations in coal-heavy regions
Data centre tenants suddenly responsible for their landlords' emissions
The bill sets a countdown clock. By 2035, miners must be 100% renewable.
For Bitcoin itself, the network will endure — it's designed to adjust difficulty based on available hashpower. But US's ambition to dominate the Bitcoin mining landscape? That dream might just have met its climate reality check.
The coming months will reveal whether Republican opposition can block the bill in Congress. But even if this particular legislation fails, it signals that cryptocurrency's energy consumption has become a political battleground that won't disappear.
For an industry built on resistance to government control, the irony is rich: The future of Bitcoin mining in the US may ultimately depend on its ability to adapt to the very regulatory climate it was designed to escape.