High crypto critic Democrat Senator Elizabeth Warren has called for strong anti-money laundering protections from foreign-owned U.S.-based crypto mining establishments.
Speaking at a Senate Committee on Banking, Housing, and Urban Affairs hearing on July 25, she sheds light on the threats posed by such foreign crypto mining operations. She mainly highlighted the environmental and national security threats of U.S. crypto mining facilities, linked to foreign companies.
“Increasingly, foreign companies are building crypto mining facilities on U.S. soil,” she said during the meeting.
“Crypto mining is a disaster for the environment, and it can pose national security risks as well.”
Mentioning a report from a blockchain analytics firm, she said citizens of the People’s Republic of China own one-third of mining facilities in the U.S. Some of these mines have direct ties to people associated with the Chinese government, Sen. Warren added.
“In May, at CFIUS’ recommendation, President Biden issued an order requiring the Chinese national owners of a crypto mining facility in Wyoming called MineOne to divest their ownership and remove the mining equipment from the premises,” she noted.
Warren stressed that these mines are “warehouses stuffed with computers that process crypto transactions and produce new crypto tokens.”
“They’re loud, they’re hot, and they suck up a ton of electricity, which can crash the power grid. Many countries have banned crypto mining, leading more foreign companies to set up shop here in the United States.”
Crypto Mining Play as Espionage, a Potential Threat: Warren
During the hearing, the Senator questioned whether crypto mines spy on U.S. military operations. Paul Rosen, Assistant Secretary of the Treasury for Investment Security answered that such sophisticated equipment could be of an use for espionage.
“Foreign adversaries are using crypto mines to spy on U.S. military operations,” Sen. Warren noted. She emphasized that this is an “obvious national security risk” and a threat to the country’s energy grid.
Warren also complained that Chinese-run U.S.-based Bitcoin mines, use energy that would power 1.5 million homes, citing an analysis.
She also raised a serious concern stressing that foreign companies buy US crypto mines in secret by paying in crypto.
“Crypto allows them to bypass our traditional banking system and the anti-money laundering rules that are supposed to prevent any anonymous foreign money from coming into the U.S.”
As a result, Sen. Warren has called for strong laws from the Treasury Department. She urges for rules to curb using crypto to evade sanctions and money laundering associated with mining.