In a significant move challenging the Biden-Harris Administration, Bitcoin miners, led by Riot Platforms, have taken legal action against key government agencies. The lawsuit targets the US Department of Energy (DOE), the US Energy Information Administration (EIA), and the Office of Management and Budget (OMB) over recent measures to gather detailed energy consumption data from cryptocurrency mining operations.

The legal complaint stems from a decision made by the OMB in January, approving an emergency request by the EIA to collect energy usage data from 82 Bitcoin mining operations, including those operated by Riot Platforms. This decision has drawn criticism from the plaintiffs and garnered support from United States Representative Tom Emmer, who allege that it represents government overreach disguised as an emergency.

The crux of the complaint revolves around allegations of procedural violations and overreach by the DOE and EIA. The plaintiffs argue that the agencies breached the Paperwork Reduction Act (PRA) and the Administrative Procedure Act by hastily approving and implementing the data collection survey without adequate public notice and opportunity for comment.

Brian Morgenstern, Head of Public Policy at Riot Platforms, emphasized the company’s stance against what they perceive as unlawful government overreach. He stated, “Proud of our team standing up against unlawful government overreach. Fanatics declared a phony emergency to publish the proprietary information of Bitcoin miners to attack decentralized assets & advance a CBDC. We must fight at this step in order to win at the next & the next.”

The core concerns highlighted in the legal document include:

Violation of Legal Procedures: The plaintiffs argue that the DOE and EIA failed to comply with the PRA’s requirements for public notice and comment, rendering the emergency information collection request (ICR) approval process arbitrary and unlawful.

Inadequate Justification for Emergency Collection: The rationale provided by the DOE for an emergency data collection is disputed, with the plaintiffs arguing that it fails to meet established criteria for such expedited actions.

Concerns Over Confidential Information: Forced disclosure of sensitive business information under the emergency ICR is said to jeopardize the competitive positions of cryptocurrency miners.

Lack of Proper Notice and Opportunity for Comment: The defendants are criticized for not providing sufficient notice or opportunity for stakeholders to comment on the information collection request, a violation of the PRA’s directives.

The plaintiffs seek judicial relief to prevent the enforcement of the emergency ICR, including an order to vacate the DOE’s emergency approval of the request.

The multifaceted critique presented in the legal complaint accuses the government of “sloppy government process, contrived and self-inflicted urgency, and invasive government data collection.” Brian Morgenstern, Head of Public Policy at Riot Platforms, voiced his stance, stating, “Proud of our team standing up against unlawful government overreach. Fanatics declared a phony emergency to publish the proprietary information of Bitcoin miners to attack decentralized assets & advance a CBDC. We must fight at this step in order to win at the next & the next.”

This lawsuit marks a crucial moment in the ongoing dialogue between the Bitcoin industry and regulatory bodies in the United States. It underscores the industry’s willingness to engage in legal battles to protect its interests and highlights the complexities surrounding cryptocurrency regulation.