Regulation
Joe Biden blocks Chinese cryptocurrency mining company – MineOne
On May 13, the President of the United States, Joe Biden, issued a directive prohibiting MineOne from acquiring real estate near a strategic missile base. The U.S. government discovered that MineOne, owned primarily by Chinese nationals, aimed to use the property for cryptocurrency mining.
This decision comes from national opinion security concerns due to the site’s proximity to Francis E. Warren Air Force Base. The base hosts Minuteman III intercontinental ballistic missiles.
National security concerns prompt rapid presidential action
The Committee on Foreign Investment in the United States (CFIUS) found risks related to foreign-owned specialized equipment at the site.
“The proximity of foreign real estate to a strategic missile base and key element of the American nuclear triad, as well as the presence of specialized equipment of foreign origin potentially capable of facilitating surveillance and espionage activities, present a risk to United States national security. States”, the order of the President bed.
Following these findings, the transaction was prohibited. MineOne and its affiliates must sell or transfer all ownership interests in the Property within 120 days. In addition, they must remove all equipment and improvements from the site within 90 days and certify the completion of these actions.
Learn more: How to Build a Mining Rig: A Step-by-Step Guide
MineOne and its affiliates are prohibited from accessing the property during this period and must ensure compliance with the order. They must also provide weekly updates to CFIUS until all conditions are met.
The Treasury Department issued an official statement following the President’s order. In the statement, Treasury Secretary Janet L. Yellen emphasized that this order demonstrates President Biden’s commitment to protecting national security.
“It also highlights the critical gatekeeper role that CFIUS plays in ensuring that foreign investments do not undermine our national security, particularly with respect to transactions that pose a risk to sensitive U.S. military installations as well as those involving specialized equipment and technology,” Secretary Yellen said. added.
Additionally, Assistant Secretary of the Treasury for Investment Security Paul Rosen reiterated that CFIUS expects complete, accurate, and timely information from involved parties. He also stressed that failure to address national security risks would prompt decisive actions, including presidential interventions.
This order follows the decision of the Department of the Treasury proposed 30% tax on electricity consumption of cryptocurrency mining companies as part of the fiscal year 2025 revenue proposals. This proposal aims to mitigate the environmental impact of the crypto mining industry’s growing energy demand.
Under this system, crypto mining companies must report the quantity and cost of electricity consumed, including off-grid electricity generation. The tax will be introduced gradually, starting at 10% and reaching 30% in the third year, starting January 1, 2025.
Biden’s crypto policies spark controversy and industry backlash
THE The Biden administration’s tougher stance towards the crypto industry is further demonstrated by its position on HJ Res 109a resolution to rescind Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) 121. This bulletin requires financial institutions to include customers’ digital assets on their balance sheets, which the crypto community considers burdensome.
The White House said rejecting the rule would weaken the SEC’s protection of investors and the financial system. President Biden is prepared to veto the resolution.
In response to the current regulatory environment, industry players are mobilizing to support pro-crypto political candidates. Coinbase has created a new political action committee (PAC) named “Stand With Crypto” to financially support pro-crypto candidates.
Coinbase PAC has gained support from various parties, including Moonpay, a fintech platform that supports crypto transactions. Moonpay CEO Ivan Soto-Wright highlighted the importance of advancing crypto innovation.
“This year’s elections will define the future of our industry in the United States, and it is our responsibility to step up and stand with organizations that want to positively advance crypto innovation for all,” Soto- Wright declared.
Learn more: Crypto regulation: what are the advantages and disadvantages?
Legislation that would interfere with crypto is a concern among crypto-positive voters. Source: The Blockchain Association
Additionally, prominent figures in the crypto community, such as Mark Cuban and Hayden Adams, have warned that Biden’s current position could impact the next election. The warning aligns with a recent report from the Blockchain Association. The report indicates that one in five American voters consider crypto a key issue, and many candidates are wary of candidates who interfere with crypto.
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