Author: Nancy, PANews

The US Bitcoin mining industry is brewing a plan to decouple from China.

On March 30, a new draft bill called the "US Mining Act" was introduced, aiming to promote the expansion of the US domestic cryptocurrency mining industry, reduce reliance on Chinese mining machines, and simultaneously transfer the strategic reserve of Bitcoin from presidential executive order to formal legal system.

This is partly a strategic move to reposition cryptocurrency mining as part of infrastructure and power grid management, and partly a crucial game surrounding computing power amid escalating technological competition between China and the US.

97% of mining machines rely on China; efforts are being made to promote the localization of mining equipment manufacturing.

“Digital asset mining is an important part of the U.S. economy, and we should mine it on American soil. President Trump promised when he took office last year to make the U.S. a global digital asset hub, and we will not back down.”

The U.S. cryptocurrency mining bill was jointly introduced by U.S. Senators Bill Cassidy and Cynthia Lummis. This is not the first time the two have collaborated on cryptocurrency legislation; last September, they jointly pushed for the modernization of the cryptocurrency tax system.

As one of the most active advocates for crypto policy in Congress, Lummis's policy agenda covers key legislation such as the Bitcoin Strategic Reserve, the GENIUS Act, and the CLARITY Act, making this new proposal highly anticipated.

This mining bill is not simply an industry support policy, but more like a strategic layout around computing power and infrastructure, with the core goal of relocating cryptocurrency mining back to the United States as much as possible.

The bill proposes that the U.S. Department of Commerce lead the establishment of a voluntary certification system to bring mining farms and pools on the verge of regulation into a standardized and compliant regulatory framework. Once certified, these mining companies will not directly receive new government funding, but they will gain legal status and be eligible to access existing federal energy subsidies and rural development programs.

This also means that cryptocurrency mining is being repositioned as a tool for grid management and energy development. Against the backdrop of many countries viewing mining as a high-risk or restricted industry, the United States is attempting to transform it into part of its infrastructure through a compliance path.

However, the bill also sets a strict condition: certified mining farms must gradually phase out mining equipment associated with foreign competitors. This is clearly aimed at China.

The draft bluntly points out that the United States currently controls about 38% of the global Bitcoin hashrate, but about 97% of the mining hardware comes from China. This is not technological leadership, but rather a supply chain risk.

To reduce reliance on foreign sources, the draft further requires the National Institute of Standards and Technology (NIST) and Manufacturing Expansion Partners to help U.S. manufacturers develop secure, energy-efficient crypto mining equipment.

The bill has already received support from the Satoshi Action Fund and is expected to be formally submitted to Congress in the coming weeks. It will then need to undergo committee review, amendments, and votes in both houses of Congress before it can be sent to the President for signature and become law.

However, the success of the bill remains uncertain. As a key proponent of this policy, Lummis's term ends in January 2027, leaving a relatively limited window for legislation.

Mining becomes a new battleground in the technology race; Bitmain faces scrutiny in the US.

Against the backdrop of continuously growing demand for computing power and energy, Bitcoin mining is gradually becoming an important part of technological competition.

The United States has gradually become one of the world's largest Bitcoin mining centers. Despite controlling a significant share of computing power, the upstream supply chain of the cryptocurrency mining industry remains highly concentrated in the hands of Chinese mining machine manufacturers. As frictions between China and the United States continue to escalate in the areas of trade, technology, and security, the United States has also accelerated its regulatory review of the cryptocurrency mining industry under the pretext of "national security."

In fact, as early as 2024, the Biden administration ordered the forced closure of a Chinese Bitcoin mining farm in Wyoming that was located near a nuclear missile base, citing significant potential security risks and the possibility that it could be used for surveillance, espionage, or intelligence gathering.

Entering 2025, with the rapid growth in demand for AI computing power and many mining companies beginning to transform towards AI infrastructure, this trend has exacerbated regulatory and geopolitical concerns.

As a leading global manufacturer of mining rigs, Bitmain has become a key target of scrutiny. In late 2024, U.S. Customs and Border Protection conducted a rigorous review of its Bitcoin mining equipment, suspecting violations of export control regulations related to Huawei, resulting in some shipments being held up for more than two months. Last September, U.S. Immigration and Customs Enforcement also raided a Bitcoin mining farm in Texas, focusing on the Antminer repair center operated by Bitmain's affiliate ADW Tech, and arrested several mining farm employees.

According to Bloomberg, Bitmain's ASIC miners are under investigation as part of Operation Red Sunset, led by the U.S. Department of Homeland Security. The investigation focuses on whether they could be remotely controlled for espionage or to disrupt the U.S. power grid. This investigation began approximately two years ago. Bitmain has denied the allegations and stated that it has not been informed of any details of the alleged investigation.

Recently, U.S. Senator Elizabeth Warren sent a letter to the Secretary of Commerce requesting documents and other information about the mining company Bitmain to review potential national security risks. In the letter, Warren also specifically focused on Bitmain's business dealings with the Trump family, requesting the disclosure of communications records between Bitmain and Eric Trump and Donald Trump Jr.

It is reported that American Bitcoin Corp., a US mining company backed by the Trump family, purchased over 16,000 mining machines from Bitmain last year for approximately $314 million. The transaction was not conducted through traditional cash or loans, but rather through Bitcoin staking. Furthermore, the two companies will collaborate on the development of a large data center in Texas, a project equivalent in size to five football fields, expected to become one of the world's largest Bitcoin mining facilities. This series of collaborations is seen as Bitmain strengthening its presence and penetration in the US market by deepening its ties with politically connected US mining companies.

In response, Bitmain stated that the reports were inconsistent with the facts, while American Bitcoin stated that its devices underwent independent security testing and no remote access vulnerabilities were found, and that the company values compliance.

Incorporating Bitcoin reserves into law to clarify the path for scaling up.

Another key change in the draft is that it incorporates the Bitcoin strategic reserve, which was originally operated in the form of an executive order, into the legal system and establishes it as a long-term mechanism within the U.S. Treasury Department.

Last March, Trump signed an executive order to promote the establishment of this reserve system. As designed at the time, the funding source was not government appropriations, but rather Bitcoin acquired by the federal government in criminal and civil asset forfeiture proceedings.

However, executive orders are essentially tools by which the president exercises executive power based on existing legal authorization. While they take effect quickly, because they are not congressional legislation, a succeeding president can directly revoke, modify, or suspend related arrangements without congressional approval. This makes the Bitcoin reserve more akin to a policy arrangement with inherent uncertainty.

If this bill is successfully passed, the Bitcoin strategic reserve will gain a clear legal status for the first time, thereby significantly enhancing its long-term stability and policy certainty.

In addition, the bill also designed a sustainable reserve expansion mechanism.

According to the draft, staking proceeds and airdrop revenue from other digital assets seized by the government will be used to continuously purchase Bitcoin. Meanwhile, certified U.S. miners can sell newly mined Bitcoin directly to the government and enjoy capital gains tax exemption. This arrangement not only helps to drive the mining industry back to the U.S. and expand domestic computing power, but also provides a budget-neutral growth path for strategic reserves, avoiding reliance on large-scale purchases in the open market or financing through tax increases.

Overall, from domestic mining machine manufacturing to compliant mining farm operation, and then to a national reserve system, the United States is attempting to build a complete closed loop in the mining industry to enable it to develop sustainably.

Data: Companies increased their holdings of a record 159,107 Bitcoins in Q2

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