U.S. Senator Elizabeth Warren slams cryptocurrencies over energy consumption and ransomware, calls on lawmakers to “face up” to the issue

During a June 9 Senate hearing on central bank digital currencies, subcommittee chair Elizabeth Warren slammed cryptocurrencies in comments, calling on lawmakers to “face up” to the issue.

Warren said cryptocurrencies have fueled ransomware attacks, saying: "Many cryptocurrencies are created using proof-of-work mining, which has devastating consequences for the climate. Some crypto mining farms are located near coal plants, emitting pollutants in exchange for harvesting a few cryptocurrencies. The total energy consumption is staggering, driving up demand for energy."

Warren, a leading candidate for the Democratic nomination during the 2020 presidential election, has slammed cryptocurrencies for facilitating high-profile ransomware attacks, such as those against Colonial Pipeline or meat producer JBS.

Regarding these types of attacks, Warren said: "Every successful hack that is rewarded with cryptocurrency serves as an advertisement, encouraging more hackers to try cyber attacks."

The comments are consistent with recent signals from the Biden administration that cryptocurrencies are moving up the list of national security priorities.

Warren went on to highlight the controversy surrounding Bitcoin’s energy usage, reiterating that the network consumes more energy to mine than the Netherlands.

“Congress and federal regulators can no longer hide behind these issues,” Warren warned. “It’s time to confront these issues head on.”

On the topic of government-sanctioned digital currencies, Warren declared: “Legitimate digital public currencies can help drive out counterfeit digital private currencies.”