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Business

Cardano creator Charles Hoskinson warns that the White House’s new crypto proposal poses a serious threat to Bitcoin




Cardano (ADA) creator Charles Hoskinson warns that new recommendations from the US government do not bode well for Bitcoin (BTC) and other crypto assets.

Taking issue with recommendations in a new White House report on science and technology policy that calls for the involvement of the US Environmental Protection Agency (EPA) and the US Department of Energy (DoE) to create evidence-based environmental standards for the responsible design of digital assets, Hoskinson says the proposals could result in an outright ban on Bitcoin.

“[The] The EPA and DoE are going to start talking to crypto companies to tell them to change the way their cryptocurrencies work.

And which way? Well, these should include: ̵[ads1]6;Standards for very low energy intensities, low water consumption, low noise generation, clean energy use by operators and standards that strengthen over time for additional carbon-free production to match and exceed the additional electricity load on their facilities.

Should these measures prove ineffective in mitigating the impacts, the administration should explore executive action and Congress may consider legislation to limit or eliminate the use of high-energy-intensive consensus mechanisms for mining cryptoassets.’

In other words, Bitcoin should be banned. That’s how you read it.”

The report is a response to an order signed by President Joe Biden in March calling for “responsible innovation of digital assets.”

According to Hoskinson, the US government could use different strategies to achieve its goals which could spell bad news for proof-of-work cryptoassets.

“The White House is now basically hiding on page seven a report that no one will ever see or read: ‘Hey Mia, nice you got there with proof of work, but you know, global warming is bad. So we should ban it.

And we’re going to soft ban it by letting the EPA and the DoE come in and basically make standards that you can’t meet.

And then when you can’t, create some kind of executive order or legislation that basically prevents you from being able to do that.

Or destroy your profit margins so that it is no longer profitable for the American mining industry.”

I

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