United States Senator Elizabeth Warren, known for her strong anti-crypto stance, has once again raised alarms about the risks of foreign-owned cryptocurrency mining operations in the country.
During a Senate Committee on Banking, Housing, and Urban Affairs hearing on July 25, Senator Warren warned that these operations pose significant national security threats.
Senator Warren argued that foreign companies establishing crypto mining facilities in the U.S. are not only environmentally harmful but also pose severe security risks.
“They’re loud, they’re hot, and they consume enormous amounts of electricity, which can destabilise the power grid,”
she stated.
In response to a query from Senator Jacky Rosen about concerns over foreign crypto mining in the U.S., Warren emphasised the potential for espionage.
“Foreign adversaries are using crypto mines to spy on U.S. military operations, presenting an obvious national security risk. Additionally, these operations threaten our energy grid, making us vulnerable to targeted blackouts and cyberattacks,”
she warned.
Senator Warren also criticised the secrecy surrounding these operations, noting that foreign entities are buying mining facilities with cryptocurrency, bypassing traditional banking systems and anti-money laundering regulations. She claimed that U.S.-based crypto mines have been able to secretly transfer millions of dollars back to China through these methods.
Warren concluded by urging legislative action, stating,
“It is time for us to pass laws to address these risks.”
The senators’ concerns about crypto mining followed significant past events in the bitcoin mining sector. David Fischer, the plant manager of a Marathon Digital mining site near Granbury, Texas, was acquitted of 12 noise violation charges by a Texas jury. Local residents had claimed that the noise from the Bitcoin mining cooling systems caused health issues.
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