Banking Lobby Targets Crypto Rewards Amidst BlackRock's Warning of AI-Bitcoin Energy War
Banking Lobby Targets Crypto Rewards Amidst BlackRock's Warning of AI-Bitcoin Energy War
Recent developments highlight significant pressures on the cryptocurrency sector from both traditional finance and emerging technological demands. Banks are actively lobbying against stablecoin and broader crypto reward programs, seeking to protect substantial hidden revenue streams and influence market structure legislation debates in Congress.
Simultaneously, BlackRock's 2026 Global Outlook presents a stark warning, asserting that the crypto industry's favorable view of AI is ending. The report projects an impending 'energy war' where the surging electricity demands of AI infrastructure will create significant competition and strain for energy resources, directly impacting Bitcoin miners and the broader energy narrative surrounding cryptocurrencies.
Banking Industry Pushes Back on Crypto Rewards Programs
The banking sector is engaged in aggressive lobbying efforts to stifle stablecoin and crypto reward programs, a move aimed at safeguarding a lucrative, albeit often undisclosed, $360 billion revenue machine. According to Faryar Shirzad, Coinbase's chief policy officer, stablecoin rewards remain a contentious issue in current Congressional deliberations over market structure legislation. Banks argue that these rewards threaten a 'hidden tax' on every household, amounting to an estimated $1,400, by offering alternative financial mechanisms that circumvent traditional banking profits. This resistance underscores the deep-seated tension between legacy financial institutions and the burgeoning crypto economy.
BlackRock Forecasts AI-Driven Energy Conflict with Bitcoin Mining
In a significant shift in perspective outlined in its 2026 Global Outlook, the BlackRock Investment Institute is advising clients to re-evaluate artificial intelligence not merely as software but as a substantial energy consumer. The report highlights that the rapid buildout of AI infrastructure is encountering critical physical limits, identifying electricity as a severely underpriced constraint. A key concern raised is the impending 'energy war' between AI-driven data centers and Bitcoin mining operations. BlackRock's analysis suggests that the escalating energy demands of AI could create intense competitive pressures for energy resources, potentially signaling an end to the crypto industry's perceived synergy with AI and ushering in a period of direct resource competition for Bitcoin miners.