Senator Elizabeth Warren is worried that cryptocurrency mining operations run by people from other countries could be a threat to national security. According to Warren, about one-third of U.S. mining sites are owned by Chinese companies, some of which have ties to the Chinese government. She said this in a Senate committee meeting.
“Cryptomining is a disaster for the environment, and it can pose national security risks as well.” Elizabeth Warren, senator of the United States
Warren brought up a recent order that would shut down MineOne, a Chinese-owned plant in Wyoming that was close to Cheyenne’s Francis E. Warren Air Force Base. The Committee on Foreign Investment in the United States (CFIUS) suggested this move after a Microsoft data center found the site to be a possible place to gather information in October 2023.
Warren Warns of Spying
Warren told Rosen, the assistant secretary of the CFIUS, that she was worried that the high-tech tools in these mines could be used for spying, especially to keep an eye on U.S. military and nuclear activities. Rosen said that he understood that this kind of equipment could be used for spying.
Senator Elizabeth also said that foreign mining companies might be able to plan specific blackouts or cyberattacks against the U.S. power grid, which she said were possible threats. She also said that the use of cryptocurrencies in these activities was wrong because they make it easier to get around standard banking systems and rules against money laundering.
Senator Elizabeth said that some mining companies were sending millions of dollars to China without anyone knowing by using cryptocurrency transfers. She called for new laws to deal with these problems.
This warning comes after Warren wrote a letter to U.S. officials in May about Iranian crypto mining, which she said was used to pay for attacks on Israel. Senator Elizabeth wanted to know how much money Iran was making from its crypto activities and what the U.S. was doing to stop this threat.
Because of these problems, the Biden government wants to put a 30% tax on the electricity that crypto miners use. Some people don’t like this idea. Senator Cynthia Lummis, for example, said it could destroy the sector.
