Senators Want to Track Crypto Mining Overseas

A pair of U.S. senators, Maggie Hassan (D-N.H.) and Joni Ernst (R-Iowa), proposed new legislation on Monday (Sept. 27) that would require the Treasury Department and other agencies to track cryptocurrency mining and global use cases, according to a Coindesk report Tuesday (Sept. 28).

The bill would require the Treasury Department, Attorney General, U.S. Trade Representative, the Office of the Director of National Intelligence and members of the Federal Reserve to monitor how crypto is used by foreign governments and private companies.

Included in the bill is a charge that the agencies named above estimate how much digital currency was mined between 2016 and 2022 and figure out which cryptocurrencies were mined, the Coinbase report says.

The proposed legislation would also require the agencies to “identify vulnerabilities, including those related to supply disruptions and technology availability of the global microelectronic supply chain, and opportunities with respect to virtual currency mining operations,” according to the report.

Hassan said in a statement the U.S. “must get a better handle” on how cryptocurrencies are used worldwide.

“I’m glad to partner across the aisle with Senator Ernst to help ensure that the Treasury Department stays on top of the use of cryptocurrency, including how it can impact our supply chains,” she said.

Related: China Declares All Cryptocurrency, Related Transactions Illegal

Meanwhile, cryptocurrencies and related transactions are now considered illegal in China, the People’s Bank of China said in a statement on its website Friday (Sept. 24).

PBOC said it was necessary to shut down crypto across the nation to preserve national security and social stability and to protect investors from risks.

In making the decision, China pointed to money laundering, gambling and pyramid schemes, which disrupt the economy. The PBOC statement specifically named bitcoin, Ethereum and Tether as examples of digital currency that can lead to nefarious activities.

The new regulations also make it illegal for cryptocurrency services operated by overseas exchanges to conduct digital transactions with people who live in China. PBOC also said it will collaborate with domestic agencies for comprehensive monitoring of cryptocurrency activity.