Bitcoin
Crypto-mining poses national security risks – Senator Warren
Posted:
| Last updated: November 7th, 2024
Journalist
- Senator Warren cited national security threats from foreign-owned U.S crypto mining operations
- Winklevoss twins donated $1 million in Bitcoin to Deaton’s campaign against Warren
Never missing an opportunity to criticize the loopholes of blockchain technology and cryptocurrencies, staunch critic Senator Elizabeth Warren (D-MA) has raised alarms about the national security risks posed by crypto-mining operations in the U.S.
Warren’s anti-crypto stance
According to the Senator, “foreign adversaries” could exploit these mining outfits to spy on U.S military activities. In doing so, they would present a significant threat to national security.
Speaking at a hearing of the Senate Committee on Banking, Housing, and Urban Affairs, Warren said,
“Increasingly, foreign companies are building crypto-mining facilities on U.S. soil. These mines are actually warehouses stuffed with computers that process crypto transactions and produce new crypto tokens.”
She added,
“They’re loud, they’re hot, and they suck up a ton of electricity, which can crash the power grid. And that’s why many countries have banned crypto-mining, leading more foreign companies to set up shop here in the United States.”
Not the first time!
This isn’t the first time Warren has targeted the crypto industry. On 29 May, in a joint letter with Senator William Cassidy, she highlighted updates from drug enforcement agencies concerning the role of cryptocurrency in the illicit fentanyl market.
Her latest statement underscores her ongoing efforts to link cryptocurrencies to criminal activities and reinforces her position on the need for stringent regulations.
In fact, during the hearing, Warren also referenced a March 2024 report by Inca Digital. She said,
“One-third of crypto mining facilities in the U.S. are owned by citizens of the People’s Republic of China, including people with direct ties to the Chinese government.”
Crypto community against Warren?
For their part, the community isn’t lying down without a fight against Warren. Gemini founders Cameron and Tyler Winklevoss, known as the Winklevoss twins, made a significant political move by donating $500,000 in Bitcoin [BTC] each to John Deaton’s campaign.
This contribution, amounting to 16 BTC or $1 million, is intended to help Deaton challenge U.S. Senator Elizabeth Warren.
