Senator Elizabeth Warren has raised concerns about the potential dangers associated with foreign-owned cryptocurrency mining facilities in the United States. She emphasized the environmental and national security threats, particularly from Chinese-owned operations, and stressed the need for stricter regulations to oversee crypto mining and prevent exploitation by foreign entities.
During a Senate Committee on Banking, Housing, and Urban Affairs hearing, Senator Warren questioned Paul Rosen, Assistant Secretary for Investment Security at the Department of the Treasury, on the risks posed by foreign-owned crypto mining facilities in the country. The hearing, which took place on July 25, focused on “Advancing National Security through Export Controls, Investment Security, and the Defense Production Act.”
Senator Warren highlighted that a significant number of crypto mining facilities in the U.S. are owned by Chinese nationals, some of whom have direct connections to the Chinese government. She expressed her concerns about the environmental impact of these facilities, which are essentially warehouses filled with computers consuming large amounts of electricity to process crypto transactions and generate new tokens. She also pointed out that many countries have banned crypto mining, leading foreign companies to set up operations in the United States.
Warren stated, “Cryptomining poses a threat to the environment and can also present national security risks.” She cited an example where President Joe Biden had ordered Chinese nationals to divest their ownership of a crypto mining facility in Wyoming called Mineone. The senator also mentioned instances where foreign nationals had purchased U.S. crypto mines using cryptocurrency to evade financial regulations.
She further warned about the potential exploitation of crypto mines by adversaries to engage in activities such as spying on military bases, disrupting the power grid, or clandestinely transferring money across borders. Warren urged Congress to pass legislation that would provide the necessary tools to the Treasury Department to prevent countries like China, Iran, and Russia from using crypto for illicit purposes.
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