Senator Elizabeth Warren, a U.S. Democrat known for her staunch opposition to cryptocurrencies, has once again raised her concerns to the public. This time, her watchful eye has turned towards mining companies, which she has accused of every sin under the sun.
Related: Expert Timing: Bitcoin Miners' Clever Move to Cash Out Just in Time for the Halving Bash
She warned the Senate committee about the potential dangers posed by foreign cryptocurrency mining operations on American soil.
On July 25, during hearings with the Senate Committee on Banking, Housing, and Urban Affairs, Senator Warren shared her perspective on foreign crypto miners, whom she claimed pose a threat to national security.
Warren accused foreign companies building crypto mining facilities in the U.S. of being a national security threat, noisy, hot, and "consuming tons of electricity that could lead to grid failures and being an environmental disaster." She even added that they trample the flowers carefully planted in your grandmother's garden.
No use crying over spilled milk
Warren's criticism was aimed at a specific facility owned by the Chinese company MineOne, located a mile from a strategic missile base in Wyoming.
Red flags about this particular site had previously been raised by tech giant Microsoft, which has a data center nearby.
The location could allow the Chinese to "conduct full-scale intelligence gathering operations," Microsoft’s team wrote in a report to the Committee on Foreign Investment in the United States (CFIUS).
But here's the interesting thing: President Joe Biden had already signed an executive order in May this year, prohibiting the China-linked cryptocurrency mining company from continuing to use the land near the nuclear missile base in Wyoming.
He cited national security concerns as the reason for the order canceling the company's property rights. The firm and its affiliates must also remove all equipment installed at the site. The order also prohibits China-linked entities from further accessing the site, which is less than a mile from the base.
Returning to Warren, when asked if there was general concern about foreign cryptocurrency mining facilities in the United States, the senator responded that they could be used for espionage.
Foreign adversaries use crypto miners to spy on U.S. military operations. This is an obvious national security risk. But it’s not the only risk. Foreign crypto miners also threaten our power grid.
She added that connecting foreign-owned crypto mining operations to our power grid "could make the U.S. vulnerable to targeted blackouts and cyberattacks."
As if criticizing miners wasn't enough, Senator Warren went on to attack digital assets themselves, stating that foreign entities buy mining operations "in secret," paying with cryptocurrency, which "allows them to bypass our traditional banking system and anti-money laundering regulations."
Similarly, American crypto miners "could secretly send millions of dollars back to China," she claimed, before concluding that "it's time we start making laws."
Are miners the enemies?
There are two sides to the coin with crypto mining. On the positive side, it can benefit power grids by balancing loads and increasing renewable energy capacity.
Cryptomining's inherent ability to be interruptible and to respond quickly to load demands can enhance the flexibility of the power system, as shown in a research paper published in November 2023.
However, in April, the Biden administration ordered stricter measures against the cryptocurrency mining industry, citing China’s ongoing crackdown on the sector as an example.
More: Bitcoin Miners: Modern-Day Prospectors or Energy Gluttons?
But Biden's time in office is ending, a more crypto- and mining-friendly candidate might take his place, and Senator Warren's hopes for stricter regulations could disappear like dust in the wind.m.
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