US Lawmakers Propose Mined in America Act to Counter Chinese Dominance in Bitcoin Mining Hardware A new legislative effort in the United States Senate aims to reshape the geography of Bitcoin mining hardware manufacturing, seeking to reduce reliance on Chinese producers. The proposed Mined in America Act targets the stark imbalance between where Bitcoin is mined and where the necessary equipment is built. Currently, the United States is the global leader in Bitcoin mining, accounting for an estimated 38 percent of the network’s total computational power, or hashrate. This dominance, however, rests on a fragile foundation. Industry analysts note that approximately 97 percent of the specialized application-specific integrated circuit miners are manufactured by just two companies based in China, Bitmain and MicroBT. This concentration of manufacturing creates strategic vulnerabilities, argue proponents of the bill. It leaves the US mining industry, and by extension a significant portion of the Bitcoin network’s security, exposed to potential supply chain disruptions, geopolitical tensions, or regulatory actions from Beijing. The goal of the legislation is to foster a domestic alternative. The Mined in America Act, introduced by Senators Cynthia Lummis and Mark Kelly, proposes a multi-pronged approach to stimulate American production of Bitcoin mining equipment. The core mechanism involves providing preferential treatment for miners who use domestically produced hardware. Specifically, the bill would grant a temporary reduction in the federal excise tax on electricity used for mining operations. The reduction would be tied to the percentage of mining machines that are made in America. For instance, if a mining facility uses 40 percent US-made machines, it would receive a 40 percent discount on that electricity tax. This incentive is designed to create immediate market demand for American-made ASICs, encouraging capital investment and research and development within the country. The tax incentive would phase out over several years, aiming to establish a self-sustaining industry. Beyond tax policy, the bill also seeks to leverage the purchasing power of the federal government. It would direct the Department of Energy to study the potential for using Bitcoin miners to provide grid stability services, such as absorbing excess renewable energy. Crucially, any mining operations participating in such federal or federally supported programs would be required to use mining equipment assembled in the United States. The introduction of this act has sparked debate. Supporters frame it as a matter of national security, economic competitiveness, and energy innovation. They argue that controlling the hardware layer is essential for true leadership in the digital asset ecosystem and that onshoring production will create high-tech manufacturing jobs. Critics, however, question the use of tax incentives for a specific industry and express concerns about the energy consumption of Bitcoin mining. They also note the significant challenge of displacing well-established Chinese firms that benefit from extensive supply chain integration and economies of scale. The path forward for the Mined in America Act is uncertain, requiring committee review and votes in both chambers of Congress. Its introduction nonetheless marks a significant political recognition of Bitcoin mining as an industrial policy issue. The debate highlights a growing focus on the physical infrastructure underpinning cryptocurrencies and a desire among some US policymakers to ensure that American mining dominance is built on American-made tools.
