PoW and climate-related financial risk

“Are digital asset markets creating climate-related financial risk for CFTC registrants, registered entities, other derivatives market participants, or derivatives markets? Are there any aspects of climate-related financial risk related to digital assets that the Commission should address within its statutory authority? Do digital assets and/or distributed ledger technology offer climate-related financial risk mitigating benefits?”

we conclude the following:

• Digital assets that rely upon the proof-of-work consensus mechanism are increasing electricity use and climate pollution.

• Digital assets are increasing electricity prices and threatening the reliability of electricity supplies.

• CFTC should use CTFC’s existing authorities to:
o increase monitoring and reporting,
o set environmental and energy standards for digital assets, and
o to prohibit misleading claims about the climate and energy impacts of digital assets.