US Senator Elizabeth Warren continues to push her anti-crypto stance, emphasizing the national security risks posed by foreign-owned crypto-mining operations. In a recent Senate Committee hearing, Warren highlighted how these cryptomines could be used by foreign adversaries to spy on US military operations and disrupt the energy grid.
However, it’s worth noting that Bitcoin miners actually benefit power grids by curbing demand and utilizing surplus energy when public demand drops. This sets them apart from traditional Web 2 and AI server farms that cannot be switched off. The energy usage of Bitcoin is also directly tied to available resources, without allowing for derivatives that harm the environment.
In addition to security concerns, Warren raised alarms about money laundering risks associated with foreign nationals acquiring crypto mines in the US. By purchasing these facilities with cryptocurrencies, they can sidestep traditional banking systems and anti-money laundering regulations. Warren cited a case where a Chinese investor purchased a $6 million crypto mine in Texas using digital assets, highlighting the need for stricter laws to prevent anonymous funding.
Warren’s anti-crypto stance faces opposition, with Republican Senator Roger Marshall withdrawing his support for the Digital Asset Anti-Money Laundering Act (DAAMLA) bill. Despite this, 18 lawmakers remain in favor of the legislation. Critics argue that the bill, proposed to bring the digital asset ecosystem in line with anti-money laundering standards, is part of Warren’s agenda to stifle the sector’s growth. Marshall’s decision to withdraw support is speculated to be influenced by the growing importance of crypto in the current political landscape.
