A well-known opponent of cryptocurrencies, Senator Elizabeth Warren spoke to the Senate Committee on Banking, Housing, and Urban Affairs on July 25. She expressed her worries about foreign-owned cryptocurrency mining operations operating in the US.
Warren’s remarks highlight her continued investigation of the cryptocurrency sector, with an emphasis on the possible threats to national security and the environment posed by these businesses.
Paul Rosen, the Department of the Treasury’s Assistant Secretary for Investment Security, was questioned by Warren throughout the hearing regarding the risks associated with foreign-owned cryptocurrency mining operations.
Warren Raises Concerns over Foreign-Owned Crypto Mining Facilities in the US
Warren noted that people from the People’s Republic of China, including those with connections to the Chinese government, possess one-third of these facilities in the United States. She stressed that there could be serious risks associated with these facilities.
Warren highlighted the case of MineOne, a crypto mining facility in Wyoming owned by Chinese nationals, which was ordered to divest by President Biden following CFIUS’ recommendation.
The facility was located near a strategic missile base, raising concerns about potential surveillance and espionage risks. Rosen confirmed that sophisticated equipment at these facilities could indeed be used for espionage, though he could not discuss specific cases in detail.
The Senator also raised alarms about the environmental impact of crypto mining. She noted that Bitcoin mining operations in the U.S. currently being run by Chinese nationals consume enough energy to power 1.5 million homes. This huge amount of energy use together with chances of targeted blackouts and cyber attacks constitute a serious threat to national security.
Warren Highlights Loopholes of the Anti-Money Laundering
Warren also criticised anti-money laundering gaps that allow foreign persons to secretly buy crypto mining facilities in the United States. She noted cases in which cryptocurrency transactions allowed foreign investors to avoid traditional banking systems and anti-money laundering procedures.
Warren urged Congress to approve legislation that would provide the Treasury Department with the necessary capabilities to prevent foreign enemies from abusing these gaps.
Warren’s request for legislative action reflects a larger worry about the relationship between Bitcoin and national security. She claims that foreign-owned crypto mining enterprises represent a multidimensional danger, including spying and potential disruptions to essential infrastructure. Warren hopes to overcome these weaknesses and protect US interests by promoting stronger laws and increased openness.
To this, Paul Rosen responded by saying, “Senator, thank you for the question and pointing out this case in particular. I’m limited in terms of what I can say about this particular transaction, but to answer your question there is a generalized concern that sophisticated equipment in proximity to sensitive facilities can be used for espionage.”
Low Confidence on Warren’s Anti-Money Laundering Bill?
Troubles are piling up for Warren as well because Republican Party Senator Roger Marshall has withdrawn his support for the Digital Asset Anti-Money Laundering Act (DAAMLA), a controversial anti-crypto measure that he co-sponsored with Elizabeth Warren in 2022.
To summarise, Warren’s latest remarks demonstrate her persistent concern about the possible risks of foreign engagement in the US bitcoin business. Her call for more regulations and more monitoring highlights the ongoing discussion over how to appropriately manage the dangers connected with digital assets and their effects on national security and the environment.
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