Fred Thiel, CEO of Marathon Digital Holdings, said that regulatory actions targeting the cryptocurrency industry are also impeding energy grid optimization. Thiel made these remarks during a Congressional hearing on February 6 concerning debanking in the U.S. crypto sector, referred to as "Operation Choke Point 2.0."
"Digital asset mining and blockchain technology are critical tools for optimizing energy grids and supporting national security," said Thiel. "Financial restrictions on the industry slow down investments in these innovative energy solutions. Additionally, these practices violate free market principles, as financial institutions should not be in the business of arbitrarily deciding which legitimate industries can operate. The systematic exclusion of digital asset companies undermines market competition, disrupts businesses, and sets a dangerous precedent for financial censorship."
According to Thiel's testimony, the forced closure of bank accounts has become a "significant issue in the digital asset industry" over recent years. He noted that digital asset firms often received little notice before account closures and were not provided with reasons other than "unclear risk concerns." Thiel argued that this pattern of debanking has negatively impacted U.S. innovation, economic growth, and energy grid optimization.
The Crypto Council for Innovation reports that Bitcoin mining consumes approximately 127 terawatt-hours of energy annually but also contributes to optimizing and stabilizing the energy grid. Bitcoin mining can function as a flexible load by adjusting its energy usage according to demand and utilizing excess energy, which enhances grid reliability. Mining operations in Texas, Iceland, and Canada have adopted renewable energy sources, resulting in reduced costs and carbon footprints while improving grid stability.
Thiel joined Marathon Digital Holdings as lead director in 2018. He is also chairman of the board at Oden Technologies and a general partner at Navigate Ventures.