U.S. Proposes Clean Cloud Act to Rein In Crypto and AI’s Growing Power Demand

The United States has proposed a new bill that could place emissions-based financial penalties on data centers powering cryptocurrency mining and artificial intelligence (AI) systems. The legislation, introduced by Democratic Senators Sheldon Whitehouse and John Fetterman, aims to tackle the environmental strain caused by the explosive growth of high-performance computing.

Titled the Clean Cloud Act, the bill seeks to establish federal emissions standards for large-scale data operations. Organizations using above 100 kilowatts of IT power would need to keep their emissions within the boundaries set by their region’s electricity grid emission rates.

The proposed legislation incorporates a penalty of $20 per ton of CO2 equivalent excess emissions above the set limit which would decline at an 11% annual rate. Each successive year the penalty amount will increase through inflation adjustment with an additional $10 surcharge.

The proposed bill tackles growing worries about energy use associated with blockchain and AI technology, which has expanded dramatically during recent years. These industries face resistance from legislators whose main concerns include electricity price increases and interference with clean energy targets.

“Surging power demand from cryptominers and data centers is outpacing the growth of carbon-free electricity,” a minority blog post from the U.S. Senate Committee on Environment and Public Works warned. The post highlighted data predicting that data centers could consume up to 12% of the nation’s electricity by 2028.

Several environmental experts have expressed analogous critical assessments. The bill obtains support from some sector representatives but runs into opposition from others. The criticism against this proposal points to its discriminatory nature toward still-evolving technologies.

The proposed policy establishes conditions that could trigger a future confrontation with current political leadership. Donald Trump removed the AI regulation executive order from 2023 through his removal of the Biden-era order despite public support for both AI and crypto expansion. Trump announced his commitment to make America the global base for AI and cryptocurrency industries.

The legislation has entered the political arena at a time when the crypto mining industry changes its fundamental direction. Major crypto mining companies including CoreScientific and Terawulf alongside Galaxy have changed their operations from Bitcoin mining to focus on AI model training and high-performance computing because Bitcoin profitability has decreased since the 2025 halving event and token price decline.

“Miners are diversifying into AI data-center hosting as a way to expand revenue and repurpose existing infrastructure for high-performance computing,” stated Coin Metrics, highlighting how miners are adapting to shifting economic conditions.

Although some miners have seen signs of financial stabilization in early 2025, global trade tensions pose a fresh set of risks.

“Aggressive tariffs and retaliatory trade policies could create obstacles for node operators, validators, and other core participants in blockchain networks,” said Nicholas Roberts-Huntley, CEO of Concrete & Glow Finance. “In moments of global uncertainty, the infrastructure supporting crypto, not just the assets themselves, can become collateral damage.”

As the Clean Cloud Act awaits Senate consideration, it has already sparked intense debate at the intersection of energy, technology, and regulation, signaling a new chapter in how the U.S. may govern the environmental impact of digital innovation.