Abstract
As cryptocurrencies continue to gain traction among mainstream investors and consumers, regulators and lobbyists are increasingly taking note of the potential environmental impacts of the industry. At its core, the process of mining new currency for virtual wallets is energy intensive, which can place strains on electrical grids and accelerate the impacts of climate change. However, these effects are felt very differently depending on what source of electricity the mining operation utilizes and the methodology behind the specific currency. These variable factors are on the minds of legislators and regulators as public pressure to better understand and regulate the industry mounts.
In Part I, this Note investigates the relationship between the cryptocurrency industry and carbon emissions, which strain the environment. Looking ahead, in Part II, this Note considers what legislators and consumers value in regulation or the lack thereof regarding cryptocurrency’s environmental impact. In addition to examining the legal standards proposed or in place, this Note will also consider shifting trends toward environmental neutrality being championed from within the industry. This Note will also evaluate how lawmakers are incentivizing cryptocurrency growth in areas that can operate using primarily green energy grids. Finally, in Part III, this Note will take the position that the free market, combined with localized incentives, will naturally encourage growth for currencies that have the least harmful — and potentially even net positive — impacts on the environment and eradicate those with the worst carbon footprint.
Recommended Citation
Crypto & The Climate: Will Local & National Environmental Regulation Save or Stifle The Cryptocurrency Boom?,
34 Fordham Envtl. L. Rev.
(2023).
Available at: https://ir.lawnet.fordham.edu/elr/vol34/iss2/4
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