Texas Blockchain Council Challenges Government Overreach in Legal Battle with Department of Energy

In a significant legal confrontation, the Texas Blockchain Council (TBC), together with Riot Platforms, has initiated legal action against the U.S. Department of Energy’s Energy Information Administration (EIA). This move comes in response to what the TBC describes as an illegal and unprecedented demand for sensitive data from bitcoin mining companies. The lawsuit, filed on Feb. 22, 2024, represents a broader fight against governmental overreach and the politicization of regulatory actions.

The EIA’s “emergency” survey requested detailed and proprietary information from the bitcoin mining sector, including equipment specifications, the locations of mining operations, and specifics about energy contracts. This information, the administration has indicated, would be published — a move that has raised serious privacy and security concerns within the industry. Further, the TBC argues that this demand is part of a targeted attack on the digital asset sector by prominent political figures and the current administration, under the guise of an emergency without legitimate justification.

Lee Bratcher, President of the TBC, articulated the council’s stance, stating, “The EIA’s actions represent an alarming precedent of government intrusion into private industry operations without just cause or proper process.” He emphasized that the true motive behind the survey appears to be political, citing the flexibility of bitcoin miners in adapting their energy usage and dismissing the notion that the request was made in the interest of grid stability.

This legal challenge is a critical juncture for not only the bitcoin mining industry but for all sectors that could face similar invasive demands in the future. By standing against what it views as a clear example of regulatory overreach, the TBC aims to protect the principle of innovation and economic growth from undue governmental interference. The case underscores the ongoing tension between the need for regulation and the protection of private industry from politically motivated actions.