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Senator Elizabeth Warren has raised the alarm about foreign-owned cryptocurrency mining operations in the United States, calling them a significant national security threat. Her statements came during a Senate Committee on Banking, Housing, and Urban Affairs hearing on July 25. TurkishNY Radio reports that Warren’s concerns extend beyond the economic impact of these facilities, highlighting potential espionage risks and threats to the national power grid.
Senator Elizabeth Warren Emphasizes National Security Risks
During her testimony, Senator Elizabeth Warren pointed to the heavy energy consumption and environmental impact of these crypto mining operations, describing them as “loud, hot, and heavy consumers of electricity.” She warned that these facilities could jeopardize the power grid, creating vulnerabilities that could be exploited by foreign adversaries.
Warren specifically mentioned a Chinese-owned facility, MineOne, located near a strategic missile base in Wyoming. This facility was ordered to be removed by President Biden in May due to national security concerns. Warren argued that such operations could be used for espionage, potentially spying on U.S. military operations and posing broader risks to the energy grid through targeted blackouts and cyberattacks.
“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 Elizabeth Warren Calls for Legislative Action
In addition to the espionage risks, Senator Elizabeth Warren accused foreign entities of secretly acquiring U.S. mining facilities using cryptocurrencies. This method allows them to bypass traditional banking systems and Anti-Money Laundering rules, enabling covert financial operations. She claimed that this practice has allowed U.S.-based crypto mines to send millions of dollars back to China without detection.
Senator Elizabeth Warren concluded her remarks by urging lawmakers to pass legislation addressing the risks posed by foreign-owned crypto mining operations. She stressed the need for tighter regulations to protect national security and the integrity of the U.S. financial system.
Despite Senator Elizabeth Warren’s warnings, research published in November 2023 suggested that crypto mining could have some benefits for energy grids. The study highlighted how mining operations could balance load and increase renewable electricity capacity. Due to their interruptibility and swift load response capabilities, crypto mines could potentially enhance the flexibility of power grids. However, Senator Elizabeth Warren’s focus remained firmly on the security risks.
Biden Administration’s Crackdown
The Biden administration has already begun taking steps to address these concerns. In April, it initiated a crackdown on the crypto mining industry, using China’s regulatory approach as a model. The White House issued an order on May 13 requiring MineOne Cloud Computing Investment and its partners to divest property operated as a crypto mining facility near the Francis E. Warren Air Force Base in Cheyenne, Wyoming. The order cited national security concerns, emphasizing the potential threat posed by foreign-owned operations.
“There is credible evidence that leads me to believe that MineOne Partners Limited, a British Virgin Islands company ultimately majority owned the national security of the United States.”
Senator Elizabeth Warren’s testimony underscores the ongoing debate about the balance between technological advancement and national security. As the U.S. government continues to grapple with the implications of cryptocurrency and blockchain technology, Warren’s call for legislative action adds a critical voice to the conversation.
Senator Elizabeth Warren’s stark warnings about the dangers of foreign-owned cryptocurrency mining operations have brought attention to a pressing national security issue. Her emphasis on the espionage risks and threats to the power grid highlights the urgent need for legislative action. As reported by TurkishNY Radio, Warren’s testimony serves as a crucial reminder of the potential vulnerabilities posed by these operations. The Biden administration’s recent crackdown on Chinese-owned mining facilities near strategic military bases further underscores the seriousness of these concerns. Moving forward, it is clear that greater regulatory oversight will be essential to safeguarding U.S. national security and protecting critical infrastructure from foreign interference.
