On May 13, U.S. President Joe Biden issued a directive prohibiting MineOne from acquiring real estate near a strategic missile base. The U.S. government discovered that MineOne, which is primarily owned by Chinese citizens, planned to use the property for cryptocurrency mining.

The decision stems from national security concerns because of the site's proximity to Francis E. Warren Air Force Base, which is home to Minuteman III intercontinental ballistic missiles.

National security concerns prompt U.S. president to act

The directive issued by U.S. President Joe Biden mentioned that MineOne, a cryptocurrency mining company mainly owned by Chinese citizens, posed a national security risk because the real estate it planned to purchase was close to a U.S. strategic missile base, which is a key element of the U.S. nuclear triad.

The directive highlights that the potential presence of specialized and foreign-sourced equipment on the property could potentially be used for surveillance and espionage, further exacerbating security risks. As a result, MineOne and its affiliates are prohibited from completing the transaction on the property and are required to divest, remove all equipment, and ensure compliance with all national security requirements within a specified time frame.

This decision reflects the U.S. government's high vigilance and firm stance on protecting national security.

Therefore, the transaction has been enjoined. 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.

MineOne and its affiliates are restricted from accessing the property during this time and must ensure compliance with the order. They must also provide weekly updates to the Committee on Foreign Investment in the United States (CFIUS) until all conditions are met.

The Treasury Department issued an official statement following the presidential order. In the statement, Treasury Secretary Janet L. Yellen emphasized that the order demonstrates President Biden’s commitment to protecting national security.

Yellen highlighted CFIUS’s critical role in maintaining national security, particularly by reviewing foreign investments that could pose risks to sensitive U.S. military facilities, as well as transactions involving specialized equipment and technology.

In addition, Paul Rosen, Assistant Secretary of the Treasury for Investment Security, reiterated that CFIUS expects parties to provide complete, accurate and timely information. At the same time, he warned that failure to effectively address national security risks will lead to firm measures, including possible presidential intervention. This reflects the U.S. government's serious attitude and preventive measures in dealing with foreign investments to ensure that national security is not threatened.

The order proposed by the Ministry of Finance as part of its revenue proposal for fiscal year 2025 would impose a tax of up to 30% on electricity consumption by cryptocurrency mining companies. The measure is intended to reduce the negative impact on the environment caused by the growing energy consumption of cryptocurrency mining activities.

Under the scheme, cryptocurrency mining companies must report the amount and cost of electricity consumed, including off-grid electricity production. The tax will be introduced gradually, starting at 10% and reaching 30% in the third year, effective from January 1, 2025.

Biden's cryptocurrency policy sparks controversy and industry reaction

The Biden administration has taken a stricter policy stance toward the cryptocurrency industry, as reflected in its stance on H.J. Res 109, which seeks to repeal Staff Accounting Bulletin (SAB) 121 issued by the SEC. SAB 121 requires financial institutions to account for customers' digital assets on their balance sheets, a requirement widely considered by the cryptocurrency industry to be overly cumbersome and onerous.

The White House has clarified that rejecting this rule would weaken the SEC's protection of investors and the financial system. President Biden is ready to veto the resolution. The Biden administration's position shows that they do not support the repeal of SAB 121, believing that doing so would weaken the SEC's protection of investors and the financial system.

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

Coinbase’s PAC has received support from various parties, including Moonpay, a fintech platform that supports cryptocurrency trading. Moonpay CEO Ivan Soto-Wright emphasized the importance of promoting cryptocurrency innovation.

“This year’s election will define the future of our industry in the United States, and it is our responsibility to stand up and support organizations that want to positively advance cryptocurrency innovation that benefits everyone,” Soto-Wright said.

Additionally, prominent cryptocurrency community figures like Mark Cuban and Hayden Adams have warned that Biden’s current stance could affect the upcoming election. This warning is consistent with a recent report from the Blockchain Association, which showed that one in five American voters consider cryptocurrency to be a critical issue, and many do not trust candidates who meddle in cryptocurrency.

Conclusion

The cryptocurrency industry is facing unprecedented challenges as the U.S. government takes stricter regulatory measures in the cryptocurrency sector, including blocking foreign-owned mining farms and imposing heavy taxes on electricity consumption by cryptocurrency mining companies. However, these measures also reflect the government's emphasis on national security and environmental protection.

Against this backdrop, the cryptocurrency community and industry participants are actively seeking solutions to protect and promote the future of their industry by supporting pro-cryptocurrency political candidates and policies. The establishment of Coinbase’s “Stand With Crypto” political action committee and the active participation of industry leaders demonstrate the cryptocurrency industry’s firm determination to safeguard its interests and promote technological innovation.

As the election approaches, cryptocurrency has become one of the key issues of concern to American voters, and its policy direction will have a profound impact on the future of the industry. #比特币挖矿 #拜登 #加密货币法规 #美国