September 27, 2022


KEY POINTS

  • CEOs of the largest American banks attended the hearing in Congress
  • Rep. Brad Sherman asked executives if they would fund cryptocurrency mining
  • The executives confirmed that they do not plan to finance such activities

Chief Executive Officers (CEOs) of the largest banks in the United States will not financially support crypto mining activities.

The CEOs of Bank of America, Wells Fargo & Company and Citigroup were present during the congressional hearing, where Rep. Brad Sherman (D-Calif.) asked the three executives if they would fund crypto mining activities.

“Are you going to fund cryptocurrency mining, which creates electricity that is then wasted on something that doesn’t light anyone’s lights, cook anyone’s food?” asked Sherman, as if by The Block.

In response, the managers confirmed that they have no plans to finance such activities.

“I don’t believe it,” Citigroup CEO Jane Fraser said, according to the outlet.

Meanwhile, Wells Fargo & Company Chairman and CEO Charles Scharf reportedly said he was “not aware of anything” about the matter.

Crypto mining activities have recently attracted a lot of criticism due to the large energy requirements that could be diverted for other purposes.

Earlier this year, Rep. Jared Huffman (D-Calif.), who chairs a subcommittee on the House Natural Resources Committee, recruited about two dozen Democratic colleagues to promote further study of cryptomining’s environmental impact.

“We have serious concerns about reports that cryptocurrency facilities across the country are polluting communities and contributing massively to greenhouse gas emissions,” he wrote in a letter signed by lawmakers including Sherman and Jamaal Bowman of California, Alexandria Ocasio-Cortez of New York and Jesús G. “Chuy” García and Marie Newman of Illinois.

“People who live near cryptocurrency mining facilities are already suffering the effects of air, water and noise pollution from these facilities,” Huffman added.

Sherman also called for a total ban on cryptocurrencies earlier this month. However, he he said“I don’t think we will get it [to a ban] soon,” acknowledging that the crypto industry plays a major role when it comes to campaign donations.

As previously reported, crypto donors, including brokers, venture capitalists and investors, gave more than $52 million in political donations. The largest donors are FTX co-CEOs Ryan Salame and Sam Bankman-Fried.

Russia is one of the world's largest cryptocurrency mining countries, but the activity may soon be banned
Russia is one of the world’s largest cryptocurrency mining countries, but the activity may soon be banned
AFP / OLGA MALTSEVA



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