The US Treasury, in coordination with the Department of Defense, has expanded an existing rule to prevent foreign-owned crypto mining facilities from establishing operations near sensitive military sites.
The update broadens the Committee on Foreign Investment in the United States’ (CFIUS) authority, enabling it to review real estate transactions within the proximity of 227 military installations nationwide.
Building on previous national security measures, the rule imposes new hurdles for foreign companies looking to set up crypto mining operations close to US military sites.
CFIUS now has the power to mandate divestment or adjust ownership structures if deemed necessary to mitigate security risks.
Treasury Secretary Janet Yellen, who chairs the committee, stated that its mission is “to ensure that foreign investment does not undermine our national security.”
Taking action
In May, President Biden invoked this rule, requiring the Chinese-backed crypto-mining firm MineOne to divest its property near Wyoming’s Francis E. Warren Air Force Base.
The action was prompted by concerns over potential surveillance risks posed by foreign-sourced equipment.
Most major crypto mining operations in the US are domestically owned, with industry leaders like Marathon Digital, Riot Platforms, and Core Scientific running large-scale facilities across Texas and other states.
A notable exception is Singapore-based Bitdeer, which operates high-capacity data centers focused on crypto mining and blockchain infrastructure.
While Bitdeer has sites in Texas, Tennessee, and Washington, they are all located outside the proximity zones of listed military installations, making it unlikely they’ll be impacted by the CFIUS rule expansion.
Kyle Baird is DL News’ Weekend Editor. Got a tip? Email at kbaird@dlnews.com.