Texas Blockchain Council, Riot Platforms Sue Dept. of Energy, OMB Over 'Emergency' Survey

The Texas Blockchain Council (TBC) and Riot Platforms (RIOT), one of the largest crypto miners in the state, sued the U.S. Department of Energy for "illegally" demanding information from many of the council's members, including Riot, according to a Thursday court filing.

The TBC and Riot also sued Secretary of Energy Jennifer M. Granholm, the U.S. Energy Information Administration (EIA) and the Office of Management and Budget (OMB) and other officials.

"This is a case about sloppy government process, contrived and self-inflicted urgency, and invasive government data collection," the filing says.

The civil lawsuit says the EIA requested an emergency review and clearance from the OMB of a planned collection of proprietary energy information from the mining companies. The EIA determined that if such a collection were not authorized, public harm was reasonably likely. That's because the bitcoin (BTC) price's recent rally would incentivize more mining activity, leading to high electricity demand just as a major cold snap hit parts of the country.

See also: Is the DOE Crypto Mining Data Request an Opportunity for Energy Innovation or for Political Opportunists?

The EIA is demanding the information by Feb. 23 "under the explicit threat of criminal fines and civil penalties." That doesn't follow the Paperwork Reduction Act’s standard clearance processes, which requires giving companies 60-day notice, the filing said.

If the court does not intervene, the companies will be "immediately and irreparably harmed by being forced to divulge confidential, sensitive, and proprietary information," the filing said.

"The EIA's actions represent an alarming precedent of government intrusion into private industry operations without just cause or proper process," TBC President Lee Bratcher said in a statement.

Debates about the impact of mining on electricity are not new, and Texas legislators have backed at least two bills signaling support for the industry.

CoinDesk has emailed the EIA, DOE and OMB for comment.

Read More: Bitcoin Mining and the Politicization of a Once Reputable Federal Agency