- The United States has expanded its authority to review foreign-owned cryptocurrency mining sites near military sites.
- Most U.S. cryptocurrency mining companies are domestically owned and operate in states like Texas and Georgia.
The U.S. Treasury, in coordination with the Department of Defense, has expanded an existing rule to prevent foreign cryptocurrency mining facilities from establishing operations near sensitive military sites.
The update expands the authority of the Committee on Foreign Investment in the United States (CFIUS), allowing it to review real estate transactions near 227 military installations nationwide.
Building on previous national security measures, the rule imposes new obstacles on foreign companies seeking to set up cryptocurrency mining operations near U.S. military sites.
CFIUS now has the authority to require divestment or adjust ownership structures if it deems it necessary to mitigate security risks.
Treasury Secretary Janet Yellen, who chairs the committee, said its mission is to “ensure that foreign investment does not undermine our national security.”
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In May, President Biden invoked this rule, forcing China-backed cryptocurrency mining company MineOne to divest its property near Wyoming’s Francis E. Warren Air Force Base.
This action was prompted by concerns about potential surveillance risks posed by foreign-sourced equipment.
Most of the major cryptocurrency mining operations in the United States are domestically owned, with industry leaders such as Marathon Digital, Riot Platforms, and Core Scientific operating large-scale facilities in Texas and other countries. other states.
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A notable exception is Singapore-based Bitdeer, which operates high-capacity data centers focused on crypto mining and blockchain infrastructure.
Although Bitdeer has locations in Texas, Tennessee, and Washington, they are all located outside of the proximity zones of listed military installations, making it unlikely that they will be affected by the expansion of CFIUS rules.
Kyle Baird is the weekend editor for DL News. Do you have any advice? Email to kbaird@dlnews.com.
