2 months ago
18 ARTICLE AD
Foreign-owned crypto mining facilities pose a critical threat to US national security by enabling espionage, disrupting power grids, and facilitating illicit financial flows, says Elizabeth Warren.
Senator Elizabeth Warren has recently stepped up her campaign against the threats posed by foreign governments and entities that deal with cryptocurrencies to the national security of the US. At a Senate Banking, Housing, and Urban Affairs hearing on July 25, Warren stated that those entities operating on American soil could pose a great risk to the American people. Warren confirmed the case of MineOne, a Chinese-owned crypto mining facility that is situated very close to a strategic missile base in Wyoming. President Joe Biden, in May, ordered the removal of MineOne, citing national security issues.
Warren’s point of view was that such facilities might be used for espionage activities. “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,” she explained.
Crypto Mining Threatens National Security
The Senator’s concerns extend beyond espionage. She highlighted the environmental impact and energy consumption of crypto mining, describing the operations as “loud, hot, and they suck up a ton of electricity, which can crash the power grid.” Warren stressed that the integration of foreign-owned crypto miners into the U.S. energy grid could lead to targeted blackouts and cyberattacks.
During the hearing, Warren also addressed how foreign entities circumvent traditional banking systems and Anti-Money Laundering rules by purchasing mining facilities in secret using cryptocurrencies. She claimed this practice allows them to send millions of dollars back to their home countries undetected.
While crypto mining can have potential benefits for energy grids, such as balancing load and increasing renewable electricity capacity, Warren remains unconvinced. A research paper from November 2023 highlighted these benefits, yet the risks seem to outweigh the positives in the Senator’s view.
In response to these threats, Warren is pushing for legislative action. She called 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.
National Security and Economic Implications
The Biden administration’s stance basically resonates with Warren’s worries. In May 2024, President Biden indifferently told MineOne to sale off its property nearby the Francis E. Warren Air Force Base. The ruling was made in the midst of the ongoing campaign to clamp down on the US Bitcoin mining industry, whose strict regulations started in China in 2021.
Warren’s campaign against crypto mining is part of a far-reaching plan to protect national security and to guarantee the security of the US financial system. By highlighting the energy shortages, she sends the message to the public in favor of more stringent laws regarding the operations of foreign-owned crypto miners in the US.
