US Senator Warren Says Foreign Crypto Miners Threatens National Security

Democrat Senator Elizabeth Warren has echoed her concerns regarding foreign-owned crypto mining establishments in the United States. 

Senator Warren, famous for her unwavering anti-crypto views, criticized foreign cryptocurrency miners, describing them as loud, hot, and weighing heavily on the power grid. 

At a Senate committee hearing, Warren warned about the potential risks of these digital asset-mining facilities in the US.

Foreign-run Crypto Mining Firms Potentially Endangers National Security

Senator Elizabeth Warren voiced concerns regarding crypto mining operations during a July 25 hearing with the Senate Committee on Banking, Housing, and Urban Affairs. 

According to the Senator, digital asset mines operated by foreigners in the US threaten national security and are a disaster to the environment. In addition, Warren noted that crypto mining facilities are loud, hot, and consume a lot of electricity, potentially crashing the power grid. 

Warren’s attack aimed mainly at a Chinese-owned Bitcoin mining facility, MineOne. 

MileOne was previously situated just a mile from a Wyoming strategic missile base. However, on May 13, President Biden ordered its removal, citing national security concerns. 

At the hearing, Senator Jacky Rosen asked whether foreign-owned crypto mining facilities in the US pose a general concern. In response, Warren said they could serve as spy centers for enemies to monitor US military operations. Not only that, she added that foreign-run crypto mines are a threat to the energy grid.

“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 cryptomines also threaten the energy grid,” Senator Warren said. 

Warren explained that crypto mines’ heavy power intake could crash the energy grid, leaving room for targeted blackouts and potential cyberattacks.

Further, Senator Warren talked about digital assets. She claimed that foreign companies have secretly purchased the mining facilities and paid in crypto. 

She further asserts that paying in crypto allows foreign entities to bypass the US anti-money laundering regulations and traditional banking system.

In addition, Warren claims crypto payments have aided US-based digital asset mines in secretly remitting millions of dollars to China. The Democrat senator concluded her testimony by calling for legislation to ban digital asset mining. 

Warren has been highly vocal and active in her anti-crypto stance. Last year, the senator introduced a bill to crack down on the use of cryptocurrency in money laundering, sanctions evasion, and drug trafficking. 

Digital Asset Mining and Energy Consumption Concerns in the US

Warren has voiced concerns about the environmental impact of crypto mining and its energy consumption. In 2022, Senator Warren led a group of lawmakers who wrote letters to the Environmental Protection Agency (EPA) and the Department of Energy (DOE) regarding carbon emissions and energy use of Bitcoin mining.

She urged the EPA and DOE to mandate crypto miners to disclose their emissions and energy use via reports. 

In addition, President Biden’s administration endorsed a crackdown on digital asset mining firms in April, ordering China-back bitcoin miners to move. The administration also proposed a 30% tax on energy used by digital asset miners. 

Meanwhile, some reports have revealed that digital asset mining can enhance the energy grid by increasing renewable energy capacity and balancing load. 

November 2023 research paper noted that crypto mining swift load response and incorruptibility could improve grid flexibility.

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