U.S. Senator Elizabeth Warren has voiced strong concerns about foreign-owned cryptocurrency mining facilities, particularly targeting their environmental and national security implications. During a Senate Committee on Banking, Housing, and Urban Affairs hearing, she questioned Paul Rosen, the Treasury Department’s assistant secretary for investment security, on the potential dangers these facilities pose within the U.S.
Warren highlighted that a significant portion of U.S.-based crypto mining facilities, about one-third, are owned by Chinese citizens or individuals connected to the Chinese government. She argued that these facilities could be used for espionage and pose a threat to the U.S. energy sector. Citing a New York Times report, Warren mentioned that Chinese-owned Bitcoin mining facilities consume enough energy to power 1.5 million homes.
Warren Pints Out Environmental and National Security Risks
The Senator described these mining operations as noisy, hot, and highly energy-intensive, claiming they could strain or even crash the national power grid. She labeled crypto mining an “environmental disaster” and a national security risk, suggesting that foreign adversaries might use these facilities to spy on U.S. military operations. Warren warned that the connection of foreign-owned crypto mining facilities to the U.S. energy grid could lead to targeted blackouts and cyber-attacks.
Warren emphasized that foreign nationals have been acquiring U.S.-based crypto mining facilities using cryptocurrency, thereby bypassing traditional banking systems and anti-money laundering (AML) measures. She urged for tighter regulations and the implementation of AML rules in the crypto sector to close these loopholes.
Withdrawal of Support for Anti-Crypto Bill
Senator Warren’s recent statements come as her colleague, Senator Marshall Roger, withdrew his support for the Digital Asset Anti-Money Laundering Act (DAAMLA), a bill they co-sponsored last year. DAAMLA seeks to impose existing AML laws and counter-terrorist financing measures on the cryptocurrency industry. The bill has received backing from several organizations, including the Bank Policy Institute, the National District Attorneys Association, and the National Consumers League.
