Biden administration's stringent crypto policies continue with a directive blocking a Chinese firm's real estate deal near a missile base. The order requires divestment and equipment removal within specified timeframes.
On May 13, President Joe Biden issued a directive preventing MineOne, a Chinese-owned crypto mining firm, from acquiring real estate near the Francis E. Warren Air Force Base due to national security concerns. The base hosts Minuteman III intercontinental ballistic missiles, and the proximity of foreign-owned equipment posed surveillance and espionage risks.
The Committee on Foreign Investment in the United States (CFIUS) mandated that MineOne divest its property interests within 120 days and remove all equipment within 90 days, ensuring compliance with these orders through weekly updates. The Department of Treasury highlighted the importance of this action in safeguarding national security.
Secretary Janet L. Yellen stressed that the order reflects the President’s commitment to protecting sensitive US military installations from foreign threats. CFIUS expects transparency and accuracy from involved parties, with Assistant Secretary Paul Rosen emphasizing decisive actions for non-compliance.
The directive follows the Treasury's proposal for a 30% tax on electricity consumption by crypto mining firms to address environmental impacts. This tax will be phased in starting January 1, 2025.
Industry reactions to Biden’s stringent crypto policies include Coinbase forming a political action committee to support pro-crypto candidates, reflecting concerns about the regulatory environment. Prominent figures warn that these policies could influence the upcoming elections.
