A commissioner with the U.S. Securities and Exchange Commission (SEC) has warned that the securities market regulator has dropped the ball on crypto regulation. Were not allowing innovation to develop and experimentation to happen in a healthy way, and there are long-term consequences of that failure, said the commissioner.

SEC Commissioner Hester Peirce expressed concerns that the U.S. has dropped the ball on the regulation of cryptocurrencies in an interview with CNBC on the sidelines of the DC Blockchain Summit this week.

Peirce, who is also known in the crypto community as crypto mom for her support of the industry, discussed challenges in the crypto ecosystem from a regulatory standpoint. Firstly, the commissioner mentioned fraud, stating that Theres a lot of fraud in this space because its the hot area of the moment.

However, she stressed that what concerns her more is that the SEC has dropped the ball on crypto regulation. Peirce stated:

The other piece that does concern me is the way that weve sort of dropped the regulatory ball.

Were not allowing innovation to develop and experimentation to happen in a healthy way, and there are long-term consequences of that failure, the commissioner warned.

The crypto market has suffered a massive loss over the recent weeks, shedding about $500 billion since the beginning of the month.

The market downturn was exacerbated by the collapse of cryptocurrency terra (LUNA) and algorithmic stablecoin terrausd (UST). The two cryptocurrencies lost almost all value within days. The catastrophe has prompted Congress to call for the urgent regulation of stablecoins.

Following the implosion of the two cryptocurrencies, SEC Chairman Gary Gensler warned that a lot of crypto tokens will fail and investors will get hurt. He has repeatedly said that a lot of coins listed on crypto exchanges are securities and should be registered with his agency. However, Gensler also emphasized that the SEC does not have enough resources to adequately police financial markets, stating that the regulator is really outpersonned. He also said that crypto exchanges are trading against their customers often.

The SEC under Gensler has so far been enforcement-centric. Since the securities watchdog launched a unit dedicated to crypto asset oversight in 2017, it has brought more than 80 enforcement actions against crypto companies. The agency recently announced that it will almost double the size of its Enforcement Divisions crypto unit.

Peirce emphasized the need for regulatory clarity from the SEC, adding that there is a lot of work to be done within existing authorities. Citing that traditional financial institutions want to get involved in crypto, she stressed: They need regulatory clarity from us in order to do that.

The commissioner opined:

We can go after fraud and we can play a more positive role on the innovation side, but we have to get to it, weve got to get working I havent seen us willing to do that work so far.

What do you think about SEC Commissioner Peirces comments? Let us know in the comments section below.

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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A cryptocurrency mining rig at BWS' mining facility in KY.

Blockware Solutions (BWS) announced Wednesday that it's partnering with SEVA -- a climate-focused company working to recreate mine lands and economies in West Virginia -- to support its solar farm endeavor. The new mining facility will be powered by West Virginia's PJM power grid as well as the new solar farm. Construction on the 150-megawatt Bitcoin mining facility is expected to begin in the fourth quarter of 2022.

The partnership with BWS is in support of SEVA's multi-phase SunPark project, which is set to include industrial and commercial development, an educational experience, tourism and hospitality venues, and other features.

The SunPark solar farm will be West Virginia's largest at 3,000 acres. Both the solar farm and BWS's mining facility are being built on the Hobet mining site, an abandoned coal mine in the Boone and Lincoln counties of West Virginia.

The construction on BWS's Bitcoin mining facility will take place in phases, with the first phase being a 60-megawatt facility on a 20-acre site. The company has two other facilities in eastern Kentucky: a 20-megawatt mining facility and a 30-megawatt mining facility that's currently under construction. According to the press release, the construction is expected to bring high-paying jobs to the area, with an average hourly wage of $23.

Bitcoin mining can be a divisive topic, with many people concerned about the environmental impact it can have. Because Bitcoin has a proof of work consensus mechanism, in order to create or mint a new Bitcoin, computers must solve mathematical equations of increasing complexity.

As the overall supply of Bitcoin decreases, the equations become more complex and therefore require more computational energy to solve. Competition among miners also increases the need for faster, more powerful machines. The first miner to solve an equation is awarded the cryptocurrency. Bitcoin's maximum supply is capped at 21 million coins.

While proof of work is the most widely used consensus mechanism in crypto, it's not the only one. Proof of stake is another consensus mechanism used to validate blockchain transactions and is more energy efficient. Ethereum, which was engineered as a proof of work consensus blockchain, is expected to adopt a proof of stake consensus sometime this year. However, it's highly unlikely that Bitcoin will ever make the transition.

According to the Columbia Climate School, Bitcoin mining consumes 121.36 terawatt hours per year, which is a higher energy consumption than some countries as well as more than Google and Apple combined.

In Cambridge University's 3rd Global Cryptoasset Benchmarking Study, the university found that only 39% of Bitcoin mining operations utilize renewable energy. The energy consumption required to validate transactions on the blockchain results in carbon emissions, which in turn damages the climate. However, BWS's Bitcoin mining operations are mostly powered by solar energy, which doesn't harm the environment.

"The way that Blockware looks at this is, we're responsible users of grid energy," Warren Rogers, Blockware Solutions CFO, told ZDNet. "One of the benefits of being in West Virginia is that we pull from the PJM grid, which is a lot of the time overproduced but a very stable grid. If you look at the PJM grid, it has a lot of renewable components to it... so it's well on its way to becoming a renewable standard."

In addition to being clean-energy focused, Rogers said the company is interested in reducing waste from abandoned industrial towns. At all of BWS's mining facilities, the company recycles and reuses previously abandoned industrial infrastructure.

According to Rogers, one of the draws for BWS to construct in the Appalachian region of West Virginia is because it has a lot of coal mines and power infrastructure that can be reclaimed, renovated, and recycled.

"At each of our sites -- this would be our third -- we've repurposed former infrastructure. We've renovated buildings, substations, and power lines," he said. "By doing that, it keeps [material] out of the landfill, it keeps it out of the smelter, [and stops it from being] melted down for something else. It's also making use of things that are already there and not disturbing the natural habitat. Some of these reclaimed mines are quite beautiful."

In addition to reusing formerly abandoned industrial infrastructure in Boone and Lincoln county, the project is expected to bring many jobs to the area. Not only will there be construction jobs created, but permanent jobs as well: technicians, administrators, security workers, maintenance employees, and others.

"Ideally, we look at it like every 10 megawatts you need three to five employees there, and it just grows after that. One reason we like the asset there is that we can grow it in phases as well. But we've seen a great demand for jobs in the area, which is another reason why we're thrilled to be there," Rogers said.

The first phase of construction could take six months to complete, depending on construction hurdles and other factors.

"A lot of these areas have suffered disproportionately in the United States, simply because of the decline in coal," he said. "And that could be viewed as right, wrong, or indifferent, but it doesn't matter. They were jobs. And when jobs are lost, communities suffer and cultures suffer. So bringing in a new form of mining to the area does a lot... and these are, comparatively, safer jobs. So I think this is an exciting step."

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Blockware Solutions to build 150-megawatt Bitcoin mining facility in West Virginia - ZDNet

One Port Aransas business owner received a automated call asking her to deposit $900 into a "federal courthouse kiosk" to pay her fines.

Unfortunately, the anonymity and decentralization that made Bitcoin popular also creates an opportunity for scammers.

3News spoke to a woman who nearly fell for the scam in the Coastal Bend, and the store owner who saved her from throwing away $900 dollars.

Times are changing, which means scammers are becoming more creative in the way they target everyday people.

The Port Aransas business owner, who wished to remain anonymous, said that scams aren't as easy to decipher as some might think.

"He made it sound super official and that I needed to leave my place of business right then and there," the business owner told 3News on the condition on anonymity.

She went on to describe how the automated call asked her to deposit money to a very unlikely place.

"He wanted me to go deposit $900 in this coinflip machine that is a federal courthouse kiosk to pay your fines," she said.

However, its not a kiosk, its an ATM like machine used to buy and sell bitcoin located inside the Middle East Market and Deli off of Everheart Road.

The owners of the deli tell 3News that scammers instruct their victims to go to machines like these, scan a QR code and then deposit money to clear their name and avoid jail time.

But, it doesn't clear anyone's name and instead gives a scammer an easy payday straight to their cryptocurrency wallet.

"So, they heard me talking to them on the phone and the cashier went over and told me that it was a big scam," the business owner said. "And the guy on the phone was arguing back and forth with them."

Liza Hamauei, owner of the Deli, saved her from the scam, but said that she was just one of the cases they were able to prevent.

"Who? I don't know, but they are sending people over here and we've already stopped three people from sending money to this scammer," Hamauei said.

In efforts to thwart potential scam attempts, Hamauei has attempted to unplug the machine. However, due to having a contract with the company to keep it in the store, she said that all she can do is warn customers of the scam.

"Right now we live in a terrible world and good people are the ones getting hurt, so we really need for this to stop," Hamauei said. "And I would double check, and call us to make sure that we can stop this."

As a reminder, the courthouse does NOT take bitcoin as a payment option and would never ask residents to deposit a payment to a third party site.

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Microsoft co-founder Bill Gates has explained why he does not own any bitcoin or other cryptocurrencies. I like investing in things that have valuable output, Gates said, adding that crypto is not adding to society like other investments.

Microsoft co-founder Bill Gates shared his opinion about bitcoin and cryptocurrencies in a Reddit AMA (Ask Me Anything) session Thursday.

One of the questions he was asked was What do you think about bitcoin and cryptocurrencies? Gates replied:

I dont own any. I like investing in things that have valuable output.

He added: The value of companies is based on how they make great products. The value of crypto is just what some other person decides someone else will pay for it so not adding to society like other investments.

Gates stance on cryptocurrency echoes that of Berkshire Hathaway Warren Buffett. The Oracle of Omaha explained in detail why he would not invest in bitcoin or cryptocurrency earlier this month.

It doesnt produce anything, Buffett described BTC, noting that he wouldnt pay $25 for all of the bitcoin in the world. What would I do with it? Id have to sell it back to you one way or another. It isnt going to do anything, he opined.

The Microsoft co-founder and co-chair of the Bill and Melinda Gates Foundation has long been a critic of bitcoin and cryptocurrency.

In February last year, he said he didnt own bitcoin, adding that he has taken a neutral view. However, he also said crypto was one tech innovation the world would be better off without. Gates noted: The way cryptocurrency works today allows for certain criminal activities. Itd be good to get rid of that.

Gates also commented on Tesla CEO Elon Musk owning bitcoin in February last year. Elon has tons of money, and hes very sophisticated, so I dont worry that his bitcoin will randomly go up or down, Microsoft co-founder said. If you have less money than Elon, you should probably watch out, he warned.

What do you think about Bill Gates comments about bitcoin and cryptocurrency? Let us know in the comments section below.

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Image Credits: Shutterstock, Pixabay, Wiki Commons

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