Key Highlights
- Bill Cassidy and Cynthia Lummis introduced the “Mined in America Act” to reduce reliance on Chinese mining hardware.
- The bill proposes a certification program and phases out adversary-linked ASICs by 2030.
- It links U.S. mining to national strategy by supporting domestic manufacturing and expanding the Strategic Bitcoin Reserve.
The United States leads the world in Bitcoin mining, controlling almost 38% of its total capacity and driving a multi-billion-dollar industry that helps strengthen power grids and support rural communities. However, a major weakness exists: nearly all (97%) of the specialized computer equipment used for this mining comes from China. This creates risks for U.S. companies, including potential supply disruptions, taxes on imports, and even the possibility of being cut off from essential equipment.
On March 30, 2026, Senators Bill Cassidy and Cynthia Lummis proposed the “Mined in America Act” to address these concerns. The bill would establish a certification process for U.S. mining operations, gradually eliminate equipment connected to foreign adversaries, and formally establish the Bitcoin reserve created by former President Donald Trump as a permanent legal framework.
Recent actions, like the seizure of Chinese computer chips earlier this year, show how critical Bitcoin mining has become. This legislation views Bitcoin mining not just as a digital currency activity, but as essential infrastructure, much like the semiconductor industry. Given that U.S. miners are already operating with limited profits – facing costs of $30 to $35 per terahash per day – this bill comes at a crucial time for both national security and the strength of our economy.
Significance of ‘Mined in America Act’
On Monday, Senators Bill Cassidy and Cynthia Lummis officially proposed the Mined in America Act. This act would create a voluntary certification program, run by the Department of Commerce, to identify Bitcoin mining operations and pools located within the United States.
Senator Cassidy highlighted the economic benefits of digital asset mining, arguing it’s important for the U.S. economy and should be done domestically. He believes the proposed bill will strengthen supply chains, boost American manufacturing, and support the industry. Senator Lummis connected the bill to former President Trump’s goal of making the United States a global leader in digital assets, stating they are committed to achieving that vision.
This legislation puts into law key parts of a March 6, 2025, Executive Order from President Trump that created the Strategic Bitcoin Reserve and U.S. Digital Asset Stockpile. That order instructed the Treasury Department to hold around 200,000 bitcoins – mostly obtained through law enforcement seizures – as a long-term national asset, keeping them in reserve instead of selling them.
This new law officially supports Bitcoin mining, allows certified miners to sell newly created Bitcoin to the government with tax benefits, and gives the policy more support in Congress, making it less reliant on actions by the President.
This shift reveals a key weakness: while the United States provides the most computing power to keep Bitcoin secure, the actual hardware that makes this possible is largely owned and operated by foreign entities.
China’s mining monopoly exposed
Recent data from early 2026, provided by CoinShares, highlights a significant difference in Bitcoin mining power distribution. The United States currently controls about 38% of the total global Bitcoin hashrate (estimated around 37.5% or 400 EH/s at the start of the year). Russia and China follow, with approximately 17% and 13% respectively, meaning these three countries together account for around 68% of all Bitcoin mining power.
While the U.S. saw a recovery in crypto mining after China restricted domestic operations in 2021, the actual mining equipment is largely made in China. Three companies – Bitmain, MicroBT, and Canaan – control almost the entire global production of specialized mining hardware (ASICs). Bitmain alone produces around 82% of all ASICs, with MicroBT at 15% and Canaan at 2%, giving these three companies a combined 99% market share, as reported by the Cambridge Digital Mining Industry Report.
This situation creates a critical weakness. Although mining activity has moved to other countries since 2021, most of the specialized hardware used for mining (efficient SHA-256 ASICs) is still located in China. This poses several risks: political tensions could lead to restrictions on exporting the hardware, security flaws in the hardware’s software could compromise the Bitcoin network or allow for monitoring of transactions, and unexpected issues could suddenly shut down a significant amount of U.S. mining operations.
Experts like Dennis Porter from the Satoshi Action Fund point out a concerning imbalance: while the United States generates 38% of the global computing power for cryptocurrencies, 97% of the specialized hardware used for this comes from China. Porter argues this doesn’t represent strong leadership, but rather a significant vulnerability.
The following table illustrates the disparity:
| Metric | U.S. Share | China Hardware % |
|---|---|---|
| Hashrate | 37-38% | N/A |
| ASICs (Mining Rigs) | <5% domestic production | ~97% |
As a crypto investor, I’ve been watching the hardware situation closely, and it’s frustrating that even with the US having advantages in things like energy and funding, we still rely heavily on foreign-made mining equipment. The ‘Mined in America Act’ seems like a smart move to fix this – it’s designed to encourage companies to buy equipment made here or in allied countries, which could really level the playing field.
Breaking down the provisions
The new law focuses on a voluntary program run by the Department of Commerce. Mining companies wanting to use the label “Mined in America” need to prove their equipment comes from trustworthy countries and that they have strong cybersecurity measures in place. Participation isn’t required, giving companies choices, but those who get certified will have an advantage when applying for federal programs and tax breaks.
Key phase-out rules include the following:
- No new purchases of hardware from designated foreign adversaries (including Chinese firms like Bitmain and MicroBT) after January 1, 2027.
- Full transition away from such equipment required by the end of the decade (approximately January 2030 for certified operations).
This legislation instructs NIST and the Manufacturing Extension Partnership to help American and partner-nation manufacturers create secure and energy-saving alternatives to ASICs. This expands the kind of industrial support seen in the CHIPS Act to include hardware used for Bitcoin mining.
Operations that meet certification standards can easily connect with current federal programs – like those focused on strengthening the power grid through the Department of Energy, supporting rural communities via the USDA, and encouraging renewable energy – without needing extra funding. Importantly, certified miners can sell newly created Bitcoin directly to the Treasury through a key connection to the Strategic Bitcoin Reserve. This provides a reliable buyer for the Bitcoin and allows the national Bitcoin holdings to grow without costing taxpayers any additional money.
The bill’s language and descriptions highlight its goal of boosting American manufacturing and strengthening digital asset security by utilizing existing federal programs and incentives. It’s designed to be easily approved because participation is voluntary and it doesn’t require any new funding, but still aims to create significant impact through economic encouragement.
Industry and market impacts
Bitcoin mining offers several benefits. It can help stabilize power grids by using up extra renewable energy or energy that would otherwise be wasted, and it can also respond to changes in energy demand. Furthermore, U.S.-based mining operations could create jobs in areas like computer chip manufacturing, assembly, and research, especially in states with plenty of energy resources such as Texas, Wyoming, and North Dakota.
Adding to the existing Bitcoin reserve of seized assets would allow it to grow consistently and also support American Bitcoin miners.
Switching to new equipment will cost operators money, and temporarily, the network’s processing power might dip during the changeover. If the rules are too strict, some operations could move to other countries or be delayed. However, if handled well, this legislation could boost the U.S. hardware industry, encourage the development of better, more secure mining equipment, and make the network stronger overall.
CoinShares’ latest report on Bitcoin mining offers helpful insights. It acknowledges some recent dips in mining power (hashrate) following last year’s highs, but predicts it will increase to 1.8 ZH/s by the end of this year, assuming market conditions remain favorable. Charts and data in the report highlight the United States’ dominance in mining capacity and the need for more domestic manufacturing of mining hardware.
This could also impact energy markets, as mining operations can make use of excess electricity. Additionally, it could strengthen national security by lessening reliance on single sources for critical materials.
Political momentum and ties
The Mined in America Act supports President Trump’s goal of establishing the United States as a global leader in digital assets. It follows up on the 2025 Executive Order regarding a Strategic Bitcoin Reserve and works alongside other positive developments in the crypto space, like the SEC’s changing stance and potential laws related to stablecoins and market structure – including parts of the Clarity Act.
With Republicans expected to have more influence in Congress after 2024, this is a good time to move forward. However, it will still take work to get the proposal through committees and gain enough votes to pass.
There’s a good chance Democrats and Republicans can agree on things like making supply chains more secure, boosting economies in rural areas, and strengthening our energy infrastructure, particularly with the midterm elections coming up. Because these ideas don’t rely on big government programs or require a lot of new spending, they’re less likely to cause political disagreements than other proposals.
Outlook and next steps
The bill seems likely to pass because it’s been designed to be practical. It uses voluntary certification, which should satisfy those who favor free markets, and connects to popular ideas from the Trump administration and existing industry programs, making it more widely acceptable. How mining companies react will be key – if they quickly start using the certification process, it could encourage more investment in U.S. manufacturing and prove the program works.
Key hurdles involve completing the specific requirements for certification, making sure the transition doesn’t create new weaknesses, and responding to concerns about the environmental impact or potential for increased centralization by highlighting how the new system will operate efficiently and support the power grid.
Why this legislation is important for the U.S. crypto landscape
The “Mined in America Act” isn’t just about mining; it represents a fundamental change in how the U.S. views digital assets in relation to its economy and national security. The bill focuses on the hardware used for mining, tackling a key weakness in the crypto world: our reliance on foreign supply chains. By lessening our dependence on mining equipment made in China, the U.S. can help ensure American miners stay operational and reduce the chance of disruptions to Bitcoin mining caused by global political events. This protects a large portion of the network’s overall processing power.
The new law also includes Bitcoin mining as part of the country’s overall industrial strategy. Similar to how the CHIPS Act supports the semiconductor industry, it sees mining facilities as important for national interests, aiming to boost American manufacturing, research and development, and employment. This moves cryptocurrency beyond just finance and speculation, establishing it as a key part of America’s ability to compete technologically.
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2026-04-04 17:41