The National Security Risks of Foreign Crypto Mining Operations According to Senator Elizabeth Warren
Senator Elizabeth Warren, known for her strong stance against cryptocurrencies, has expressed new concerns. She warned a Senate committee about the potential dangers posed by foreign-owned crypto mining operations on American soil.
During a hearing of the Senate Committee on Banking, Housing, and Urban Affairs on July 25, Democrat Senator Elizabeth Warren voiced her views on foreign crypto miners, which she considers as a threat to national security. She believes that foreign companies building cryptocurrency mining facilities in the United States are, in her words, “an environmental disaster” and also pose risks to national security.
The Environmental Impact and Risks to the Power Grid
Warren described crypto mining facilities as “noisy, hot, and consuming an enormous amount of electricity, which can cause power outages.” She specifically targeted a Chinese-owned facility called MineOne, located one kilometer away from a strategic missile base in Wyoming, before President Biden ordered its removal in May.
Crypto mining operations are being used by foreign adversaries to spy on US military operations. This is an obvious risk to national security.
The senator also raised general concerns about foreign crypto mining operations in the United States, stating that they could be used for espionage.
Furthermore, she added that connecting these facilities to the power grid could make the United States vulnerable to targeted outages and cyberattacks.
Elizabeth Warren Upholds Her Anti-Crypto Position
Warren also criticized the digital assets themselves, stating that foreign entities have been purchasing mining facilities “secretly” by paying in crypto, allowing them to bypass the traditional banking system and anti-money laundering regulations.
She further stated that this is how US-based crypto mines have been able to secretly send millions of dollars to China, concluding that “it is time for us to enact laws.”
It is well-documented that crypto mining can benefit electrical grids by balancing loads and increasing renewable electricity capacity. A study published in November 2023 found that the inherent interruptibility and fast-response capabilities of cryptocurrency mining could enhance grid flexibility.
However, in April, the Biden administration ordered a crackdown on the crypto mining industry, citing China as a model to follow in its ongoing battle against the industry.
