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Hello people, most welcome to my blog. Here, we are going to discuss a proposal that directly affects crypto and AI. Here, we are discussing the "Clean Cloud Act 2025" introduced by John Fetterman and Democratic Senator Sheldon Whitehouse. According to this, there is a financial penalty included for AI data centers and cryptocurrency mining that exceeds the environmental standards. I am a crypto fan, but right now, climate change is the biggest issue. That's the reason we also need to take care of this thing.

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High emissions are not a good thing, and if there is a regulation regarding this particular thing, then it is not bad. Here, we have to wait for the possible outcome.

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Senate bill aims to fine high-emitting crypto mining and data centers

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The bill title is "Clean Clouds Act of 2025." After seeing this, you can understand what this bill talks about. There should be a clean air act that addresses the energy consumption, which is rising, and this act is specially made for digital economy like crypto and AI. Annual reporting will be demanded from the electricity use which is more than 100 kilowatt and there are more such as consumption data, disclosure of power sources and emissions intensity.

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Here, we need to see that the hashrate of Bitcoin and crypto mining in the US has increased by up to 739% between the years of 2020 and 2022, and because of this, the fossil fuel plants are reactivating to run these digital processes. It can be 12% of total electricity consumption, and this use comes from AI and crypto. That's the reason this new bill is taking place and this is just the data of US not the all other countries.

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In this case, emission baselines for each United States region are established by this bill, and these decline annually. After this rule, whoever exceeds the limit will be charged $20 per kilowatt per hour, which is additional. This gathered fund will be used for consumer energy rebates, to support clean energy projects, and for the administration of the program. Now tell me if this bill is useful or not, and this thing will be decided by the politicians and people too.

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Drawbacks of this bill

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As you can see, the bill has strict deadlines, the emissions fees that we talked about above, and there is a compliance cost, and these things could discourage investment in technology, and not only this it can limit the scalability of start-ups and giving first priority to regulatory complaince instead of developement and research. So this is not good for the small firms in the digital field, and at the same time, it is in favor of established companies who already own the resources and can easily meet the standards.

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Image source 1, 2

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