Senators Cynthia Lummis and Bill Cassidy recently introduced the Mined in America Act, a significant piece of legislation aimed at strengthening the domestic Bitcoin mining industry. This initiative seeks to create a federal certification program that would officially recognize U.S.-based mining operations while establishing stricter regulations on equipment sourced from foreign adversaries, particularly China and Russia.
Under the framework proposed in the act, the Commerce Department would oversee a voluntary certification process for Bitcoin mining facilities and pools. Those operations that successfully earn the “Mined in America” designation would be granted access to various federal energy and rural development programs. In return for receiving these benefits, certified miners would be required to phase out hardware manufactured by companies considered to be connected to foreign adversaries. This strategic pivot towards domestic hardware production reflects broader concerns regarding national security and economic independence.
The central focus of the legislation revolves around the significant dependency on Chinese-manufactured equipment in the Bitcoin mining sector. According to Dennis Porter, CEO of the Satoshi Action Fund, a group involved in crafting the legislation, an overwhelming 97% of Bitcoin’s global hash rate relies on machines produced in China. This taps into larger trends in the semiconductor supply chain, which have prompted legislative responses like the CHIPS and Science Act of 2022. That act allocated $52.7 billion to boost onshore chip manufacturing in the wake of shortages highlighted by the COVID-19 pandemic, underscoring vulnerabilities associated with reliance on overseas facilities.
As the Bitcoin market faces increasing pressures, with profitability declining after reaching all-time highs, the bill arrives at a time when publicly traded miners are diversifying their operations. Many are now focusing on hosting artificial intelligence workloads, reflecting shifts in industry demand. Notably, the United States currently contributes approximately 37.5% of the global Bitcoin hash rate, the highest share of any single nation.
Senator Cassidy underscored the potential for job creation tied to this legislation, suggesting that the development of mining facilities alongside data centers for AI could play a crucial role in supporting domestic employment.
Additionally, the Mined in America Act incorporates provisions from a recent executive order by former President Donald Trump concerning the Strategic Bitcoin Reserve. This aspect of the bill aims to codify the directive that the Treasury should hold onto forfeited Bitcoin rather than liquidating it—a significant policy shift aiming to bolster the country’s digital asset strategy. Lummis, who has announced she will not seek re-election when her term concludes in January 2027, has previously advocated for a budget of $14.4 billion to fund the Strategic Bitcoin Reserve with seized cryptocurrency assets, although no specific budget-neutral plan has been publicly introduced as part of this initiative.
Overall, the Mined in America Act marks a critical moment for the intersection of cryptocurrency, national security, and economic policy in the United States, emphasizing the importance of a self-sustaining and secure mining infrastructure.
