Bitcoin miners and associations file lawsuit against US government

Bitcoin (BTC) miners and associations have taken action against the Biden administration’s policies towards the crypto sector by filing a lawsuit against three US government agencies. This move follows energy agencies’ approval of data collection on energy consumption by crypto miners.

The Texas Blockchain Council (TBC) and Riot Platforms filed a declaratory judgment and preliminary injunction against the U.S. Department of Energy, including the Energy Information Administration (EIA), and the Office of Management and Budget (OMB) on February 22 in the Federal District Court for the Western District of Texas.

The plaintiffs claim that the EIA’s urgent data collection from many TBC members, including Riot Platforms, is “unlawful.” They also allege that the EIA and OMB are violating the Paperwork Reduction Act and its implementing regulations. In addition, they argue that government agencies act arbitrarily and thoughtlessly, violating laws such as the Administrative Procedure Act.

“The lawsuit alleges careless government processes, manufactured and self-proclaimed urgency, and intrusive government data collection,” the statement noted.

Mines and TBC are seeking a preliminary injunction and injunction prohibiting designated commercial crypto miners from providing data to the U.S. Department of Energy and the EIA. In addition, they want to revoke OMB’s approval for data collection and prohibit any collection of data by the agencies without notice and comment.

The Office of Management and Budget (OMB) approved the EIA’s urgent request for complete energy consumption data from 82 Bitcoin mining operations. OMB approved the request just two days after it was received from the EIA on January 26, without an appropriate notice and comment period for the miners.

House Majority Whip Tom Emmer drew attention to the administration’s abuses by openly criticizing the Biden administration for its fight against Bitcoin mining and the crypto sector, in support of the crypto industry.

Recently, Texas-based crypto firm Lejilex and the Texas Crypto Freedom Alliance (CFAT) filed a lawsuit against the United States Securities and Exchange Commission (SEC) for regulatory overreach.