Biden Blocks Chinese-Owned Crypto Mining Site Near US Missile Base

President Joe Biden's directive on May 13 prevents MineOne, primarily owned by Chinese nationals, from acquiring property close to a strategic missile base due to concerns over national security. The decision arises from the Committee on Foreign Investment in the United States (CFIUS) identifying risks associated with foreign-owned equipment at the site.

MineOne and its affiliates are mandated to divest ownership interests in the property within 120 days and remove all equipment within 90 days. Weekly updates to CFIUS are required until compliance is ensured.

Treasury's National Security Focus: Crypto Policy and Environmental Initiatives

Secretary of the Treasury Janet L. Yellen underscores the President's commitment to national security. Assistant Secretary Paul Rosen emphasizes the importance of parties providing accurate information to CFIUS to address security risks promptly.

The Treasury proposed a gradual tax increase on electricity consumption by crypto mining firms to mitigate environmental impact. Industry reaction includes Coinbase's establishment of a political action committee (PAC) to support pro-crypto candidates.

In response to the current regulatory environment, industry players are rallying to support pro-crypto political candidates. Coinbase has created a new political action committee (PAC) named “Stand With Crypto” to support crypto-friendly candidates financially.

Coinbase’s PAC has garnered support from various parties, including Moonpay, a fintech platform that supports crypto transactions. Moonpay CEO Ivan Soto-Wright emphasized the importance of advancing crypto innovation.

“This year’s election will define the future of our industry in the United States, and it is our responsibility to step up and stand alongside those organizations that want to positively advance crypto innovation for everyone,” Soto-Wright stated.

Legislation that Would Interfere with Crypto is a Concern Among Crypto-Positive Voters. Source:The Blockchain Association

Biden Administration's Crypto Policy Sparks Debate and Election Concerns

The Biden administration's stance on crypto is contentious, particularly regarding H.J. Res 109, which seeks to nullify the SEC's Staff Accounting Bulletin 121. Industry figures like Mark Cuban and Hayden Adams caution that Biden's approach could influence upcoming elections, reflecting voters' concerns over crypto issues.

President Biden's recent directive reflects heightened concerns over national security regarding foreign-owned crypto mining operations. The Treasury's proposed tax aims to address environmental concerns. Industry players, including Coinbase, are mobilizing support for pro-crypto candidates. However, Biden's stance has sparked controversy and may influence voter sentiment towards crypto-related issues in upcoming elections.