Key Points
- Senator Elizabeth Warren warns of national security threats posed by foreign crypto miners operating in the US.
- Warren calls for legislation to address these risks and close financial system loopholes.
Senator Elizabeth Warren has intensified her campaign against potential threats to US national security from foreign governments and entities involved in cryptocurrencies. During a Senate Banking, Housing, and Urban Affairs hearing on July 25, she highlighted the risks associated with these entities operating within the US.
Warren cited the example of MineOne, a Chinese-owned crypto mining facility located close to a strategic missile base in Wyoming. President Joe Biden ordered the removal of MineOne in May, citing national security concerns.
Foreign Crypto Mining Facilities as Potential Threats
According to Warren, such facilities could be used for espionage. She stated, “Foreign adversaries are using cryptomines to spy on US military operations. That is an obvious national security risk. But it isn’t the only risk. Foreign-owned crypto mines also threaten the energy grid.”
The Senator’s concerns extend to the environmental impact and energy consumption of crypto mining. She described these operations as “loud, hot, and they suck up a ton of electricity, which can crash the power grid.” She emphasized that the integration of foreign-owned crypto miners into the U.S. energy grid could lead to targeted blackouts and cyberattacks.
Warren also addressed how foreign entities evade traditional banking systems and Anti-Money Laundering rules by secretly purchasing mining facilities using cryptocurrencies. This, she claimed, allows them to send millions of dollars back to their home countries undetected.
The Debate Over Crypto Mining Benefits
While acknowledging potential benefits of crypto mining for energy grids, such as balancing load and increasing renewable electricity capacity, Warren remains skeptical. She cited a research paper from November 2023 that highlighted these benefits but believes the risks outweigh the positives.
In response to these threats, Warren is advocating for legislative action. She is calling for laws to address the national security risks posed by foreign-owned crypto mining facilities and to close existing loopholes in the financial system that these entities exploit.
The Biden administration’s position aligns with Warren’s concerns. In May 2024, President Biden instructed MineOne to sell off its property near the Francis E. Warren Air Force Base. This decision was made amidst a campaign to regulate the US Bitcoin mining industry, which began in China in 2021.
Warren’s campaign against crypto mining is part of a broader plan to protect national security and ensure the security of the US financial system. By highlighting energy shortages, she is advocating for stricter laws regarding the operations of foreign-owned crypto miners in the US.
