14 May

On May 13, President Joe Biden issued a directive preventing MineOne, predominantly owned by Chinese nationals, from acquiring real estate near the Francis E. Warren Air Force Base for crypto mining purposes, citing national security concerns. 

The site's proximity to the strategic missile base raised alarms, particularly regarding the potential espionage risks posed by foreign-owned specialized equipment.

As a response, the Committee on Foreign Investment in the United States (CFIUS) prohibited the transaction, mandating MineOne and its affiliates to divest ownership interests in the property within 120 days. Additionally, they must remove all equipment and improvements within 90 days and ensure compliance with the order, providing weekly updates to CFIUS.

Secretary of the Treasury Janet L. Yellen emphasized President Biden's dedication to safeguarding national security, highlighting CFIUS's pivotal role in preventing foreign investments from undermining national interests, especially concerning sensitive military installations and specialized technologies.

Assistant Secretary of the Treasury Paul Rosen underscored CFIUS's expectation of complete, accurate, and timely information from involved parties, warning of decisive actions in addressing national security risks, including Presidential interventions.

This directive follows the Department of Treasury's proposal for a progressive tax on electricity consumption by crypto mining firms, aiming to mitigate the industry's growing environmental impact. The tax, starting at 10% and reaching 30% by 2025, intends to regulate energy usage.

President Biden's firm stance on crypto policies extends to H.J. Res 109, a resolution challenging the Securities and Exchange Commission's (SEC) requirement for financial institutions to include customers' digital assets on their balance sheets. 

Rejecting this rule could weaken investor and financial system protections, prompting Biden's readiness to veto the resolution.

In response to the regulatory landscape, industry actors are rallying support for pro-crypto political candidates. Coinbase's establishment of the "Stand With Crypto" political action committee (PAC), supported by entities like Moonpay, underscores the importance of advancing crypto innovation amidst evolving regulations.

May 2024, Cryptoniteuae

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