US Senator Elizabeth Warren Warns of Foreign Cryptocurrency Mining Risks
US Senator Elizabeth Warren recently raised concerns about the risks associated with foreign cryptocurrency mining operations within the United States. This warning aligns with the stance of the current White House administration.
During a hearing on July 25, Senator Warren highlighted the potential threat to national security posed by cryptocurrency mining companies owned by foreign entities.
National Security and Ecological Risks
Senator Warren expressed her worries about both national security and ecological risks stemming from these operations. She described foreign-owned cryptocurrency mining farms as an “environmental disaster” that could potentially disrupt the country’s energy grid.
When questioned about the relevance of these concerns to all foreign mining entities in the US, Warren pointed out the risk of espionage. She specifically mentioned instances of foreign companies allegedly using mining operations to monitor US military activities.
Proposed Regulations and Crackdown on Cryptocurrency Mining
In response to these concerns, Senator Warren emphasized the need for regulatory measures to address the risks associated with foreign cryptocurrency mining operations. She advocated for the passing of laws that would enable the Treasury Department to oversee and regulate these activities effectively.
Furthermore, Senator Warren has been vocal about the potential misuse of cryptocurrency mining in circumventing sanctions, as evidenced by her previous correspondence regarding Iran’s crypto mining activities. Alongside Senator Angus King, she urged US officials to investigate the revenue generated by Iranian crypto miners and assess the possible implications for money laundering.
In addition to Warren’s efforts, the Biden administration has proposed a 30% consumption tax on the electricity costs related to Bitcoin mining as part of its broader initiatives to regulate the industry and address potential risks.
