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Federal Legislation — 119th Congress

Mined in America Act

Securing America's Digital Infrastructure Through Domestic Bitcoin Mining

The ProblemThe OpportunityThe SolutionFederal ProgramsStrategic ReserveEnergy & AIStudiesResearchFAQ
1

The Problem

America's Strategic Vulnerability in Bitcoin Mining

38%
U.S. Global Hashrate
World leader in mining
97%
Chinese Hardware
Adversary-manufactured ASICs

Three Threats from Chinese-Manufactured Hardware

Chinese-Manufactured Hardware

Bitmain & MicroBT (97% market share)

Track 1: Export Controls

China restricts or bans ASIC exports to the U.S.
Bitcoin miners cannot replace aging hardware — operations shut down
Miners stop purchasing power from energy producers
Grid economics collapse — revenue loss destabilizes energy infrastructure

Result: Rate payer impact, grid instability, loss of U.S. hashrate sovereignty

Track 2: Backdoors & Kill Switches

Hidden firmware capabilities (e.g. Antbleed) allow remote control of miners
Adversary can remotely shut down or disrupt thousands of machines simultaneously
Sudden load changes destabilize the grid balance — risking blackouts
Potential espionage via hardware near sensitive military installations

Result: Grid security is national security — adversary control over critical infrastructure

Security Incidents Timeline

2017
Antbleed Backdoor Discovered

Security researchers discover hidden firmware in Bitmain hardware capable of remotely shutting down mining equipment.

2023
CBP Seizes Bitmain Shipments

U.S. Customs and Border Protection intercepts Bitmain hardware shipments amid growing national security concerns.

2024
Operation Red Sunset

DHS launches investigation into Bitmain hardware for potential remote-control and espionage capabilities embedded in mining equipment deployed across the U.S.

2024
Senate Intelligence Committee Report

Documents Chinese-owned mining operations located near sensitive U.S. military and intelligence installations.

Hardware Monopoly
97% of ASIC mining hardware is manufactured by two Chinese companies — Bitmain and MicroBT — giving an adversary nation chokepoint control over critical infrastructure.
Export Control Threat
If China imposes export controls on mining hardware, U.S. mining capacity would collapse within months — threatening hashrate sovereignty and the Strategic Bitcoin Reserve.
Antbleed Backdoor
In 2017, security researchers discovered hidden firmware in Bitmain hardware capable of remotely shutting down mining equipment — a kill switch controlled by the manufacturer.
Kill Switch Risk
Hardware with embedded remote-access capabilities could be weaponized to simultaneously disable mining operations across the U.S., collapsing American hashrate in a coordinated attack.
Operation Red Sunset
The Department of Homeland Security investigated Bitmain hardware for potential remote-control and espionage capabilities embedded in mining equipment deployed across the U.S.
Proximity to Military
The Senate Intelligence Committee documented Chinese-owned mining operations located near sensitive U.S. military and intelligence installations.

Key Takeaway

The U.S. leads global hashrate at 38%, but this dominance is built on 97% adversary-manufactured hardware — creating supply chain vulnerability, espionage risk, and potential for coordinated disruption that could collapse American mining capacity within months.

2

The Opportunity

Before we get to the solution, let's talk about the opportunity

Bitcoin mining is one of the most valuable tools available to the United States for strengthening our energy grid, improving our energy systems, and protecting our environment.

20,000
GWh Renewable Energy Wasted
9,500+
MW Flexible Mining Load
$4.14B
Annual GDP Impact
31,000+
Jobs Supported
Energy & Grid Stability
PeakMining curtails
  • Mining provides demand-responsive load that can curtail within seconds during grid emergencies
  • 20,000 GWh of renewable energy curtailed annually across U.S. grids — mining can absorb this waste
  • 9,500+ MW of approved flexible mining load in ERCOT alone
  • $15B+ annual value in grid flexibility (Brattle Group estimate)
Environmental Impact
Methane
Mining
Reduced CO2
  • Mining-methane integration can bring ~50 landfills to carbon-neutral status
  • Captures vented methane from landfills, oil/gas wells, and wastewater treatment plants
  • White House OSTP acknowledged mining's positive climate impact potential
  • Peer-reviewed research by Rudd et al. validates landfill gas-to-energy mining benefits
Economic Growth
  • $4.14B annual GDP contribution from Bitcoin mining operations
  • 31,000+ direct and indirect jobs created across the mining ecosystem
  • Rural anchor tenant model — mining facilities justify infrastructure investment in underserved areas
  • $38B+ in mining-to-AI conversion deals announced, creating dual-use compute infrastructure

Key Takeaway

Bitcoin mining strengthens America's energy grid, captures wasted methane emissions, contributes $4.14B in annual GDP, and supports 31,000+ jobs — all while creating infrastructure that can be converted to AI compute.

3

The Solution

Mined in America is the solution to move away from Chinese hardware

Incentives Not Mandates

Certification is voluntary. Access to federal programs and tax benefits rewards compliance — it doesn't punish non-participation.

Gradual Transition

A predictable timeline from 2027 to 2030 gives operators years to plan capital expenditures and shift supply chains.

Zero New Spending

All benefits flow through existing, already-appropriated federal programs. No additional taxpayer cost.

The Virtuous Loop

Certification creates a self-reinforcing cycle that strengthens every component

U.S. Hardware

Domestic manufacturing

Enables grid participation

Grid & Env Benefits

Stability & emissions reduction

Reinvest in domestic

CYCLE

Qualifies for SBR sale

Capital Gains Exemption

IRC Section 139M

Tax-free sale to Reserve

Sell BTC to SBR

On-chain verified provenance

U.S. Hardware

Domestic manufacturing

Grid & Env Benefits

Stability & emissions reduction

Sell BTC to SBR

On-chain verified provenance

Capital Gains Exemption

IRC Section 139M

Loop continues — reinvest in U.S. hardware

Voluntary Certification Program
Administered by the Secretary of Commerce, the program incentivizes compliance rather than mandating behavior.

Certification Requirements:

  • Hardware provenance from U.S. or allied/friendly nations
  • Cybersecurity standards compliance
  • Ownership transparency requirements
  • Mining pool certification
Preferred certification for early movers (<25% adversary hardware)
Hardware Transition Timeline
A gradual, predictable transition away from adversary-manufactured hardware.
Jan 2027
No new adversary hardware purchases
Jan 2028
Max 75% adversary hardware
25% domestic75% adversary
Jan 2029
Max 50% adversary hardware
50% domestic50% adversary
Jan 2030
0% adversary hardware
100% domestic

Certification unlocks: Access to 4 existing federal energy programs + capital gains tax exemption for selling mined Bitcoin to the Strategic Bitcoin Reserve.

Key Takeaway

The voluntary certification program creates a clear pathway from 97% adversary hardware dependence to 0% by 2030 — using incentives, not mandates, with zero new federal spending.

4

Federal Program Access

What Certification Unlocks

These programs already exist and are already funded. Bitcoin mining naturally aligns with what they were designed to support — grid stability, environmental remediation, infrastructure reinvestment, and rural economic development. Certification simply opens the door.

Zero New Federal Spending

All programs are already appropriated — no additional taxpayer cost.

DOE Title XVII Loan Guarantees
$250B+ lending authority available for innovative energy projects. Certified miners gain access to low-cost capital for facility construction and expansion.

Why mining qualifies: Mining facilities are innovative energy projects that monetize stranded and curtailed power.

DOE Infrastructure Reinvestment Program
Enables mining facilities to access funding for repurposing retired energy infrastructure, creating new economic activity at decommissioned sites.

Why mining qualifies: Mining repurposes decommissioned power plants and industrial sites into productive compute facilities.

DOE Smart Grid Investment Grants
Supports mining operations that provide demand response and grid stabilization services, rewarding facilities that strengthen energy infrastructure.

Why mining qualifies: Mining is the fastest demand-response resource on any grid — curtailing in seconds, not minutes.

USDA REAP
Rural Energy for America Program — provides grants and loan guarantees for rural mining operations, turning mining into an anchor tenant for underserved communities.

Why mining qualifies: Mining is the anchor tenant that makes rural energy infrastructure investment viable.

Key Takeaway

Certified miners gain access to four existing federal energy programs — Title XVII loans, infrastructure reinvestment, smart grid grants, and USDA REAP — all without a single dollar of new appropriations.

5

The Strategic Bitcoin Reserve

Revenue Generation, Statutory Codification & National Security

BTC Holdings: U.S. vs China

United States~198,000 BTC
198K
China~190,000 BTC
190K

The race for Bitcoin reserves is already underway. Mined in America ensures the U.S. stays ahead.

Codified in Statute
Codifies both the Strategic Bitcoin Reserve and the Digital Asset Stockpile in federal statute (31 USC 334), giving both permanent statutory authority beyond executive orders.
Acquisition Account
Creates the Strategic Bitcoin Acquisition Account, funded by staking rewards and airdrops from the Digital Asset Stockpile. The bill enables Treasury to stake assets held in the Digital Asset Stockpile, generating ongoing revenue that flows directly into Bitcoin purchases for the Reserve — a self-sustaining acquisition mechanism.
Tax Exemption (Expanded)
Capital gains tax exemption (IRC Section 139M) for selling mined Bitcoin directly to the Reserve. This is a discretionary incentive — Treasury MAY grant the exemption, and only certified miners qualify. This completes the virtuous loop: miners who invest in domestic hardware and meet certification standards are rewarded when they strengthen the national reserve.
On-Chain Verification
Cryptographic proof of mining provenance ensures that only verifiably American-mined Bitcoin enters the Reserve.

National Security Dimensions

Monetary Security
  • Reserve asset for inflation hedging and economic sovereignty
  • Geopolitical competition — China, Russia, and other nations are accumulating Bitcoin
  • Permanent statutory authority prevents future administrations from liquidating reserves
Cyber Defense
  • Jason Lowery thesis: proof-of-work extends physical power projection into cyberspace
  • DARPA-funded blockchain secure messaging for decentralized military communications
  • NATO interest in proof-of-work for cyber defense and resilient infrastructure

Strategic Reserve Value Calculator

Explore the cost of selling seized Bitcoin and the potential of holding

8 of 8
Jun 2014Jan 2023
SaleBTCSold AtProceeds
Jun 201429,657$600$17.8M
Dec 201450,000$350$17.5M
Mar 201550,000$280$14.0M
Nov 201544,341$365$16.2M
Aug 20162,719$580$1.6M
Jan 20183,813$11,000$41.9M
Mar 20182,170$8,500$18.4M
Jan 20239,861$17,000$167.6M

Sold For

$295.1M

192,561 BTC

Worth Today

$12.98B

@ $67,400/BTC

Opportunity Cost to Taxpayers

$12.68B

Value lost by selling instead of holding

Data from U.S. Marshals Service auctions and DOJ records. Current BTC price: $67,400

Revenue Flow to the Strategic Bitcoin Reserve

Treasury stakes Digital Asset Stockpile holdings to generate revenue that funds Bitcoin acquisition

Digital Asset Stockpile

Non-BTC seized assets

Staking Rewards & Airdrops

Yield from staked assets

Strategic Bitcoin Acquisition Account

Dedicated funding pool

Purchases Bitcoin

Open market & miners

Strategic Bitcoin Reserve

National BTC holdings

Digital Asset Stockpile

Non-BTC seized assets

Staking Rewards & Airdrops

Yield from staked assets

Strategic Bitcoin Acquisition Account

Dedicated funding pool

Purchases Bitcoin

Open market & miners

Strategic Bitcoin Reserve

National BTC holdings

Complements state-level SBR laws already enacted in NH, AZ, and TX.

Key Takeaway

The Mined in America Act codifies the Strategic Bitcoin Reserve in federal statute, creates a self-sustaining acquisition mechanism, and incentivizes certified miners to strengthen national holdings through tax exemptions — while positioning Bitcoin as critical national security infrastructure.

6

Energy Development & AI Conversion

Bitcoin mining is an energy development tool — it arrives first, builds infrastructure, then enables the future of American compute

In ecology, a pioneer species is the first organism to colonize barren environments, enriching the soil so more complex species can follow. Bitcoin mining plays the same role in energy: it monetizes stranded, wasted, or uneconomic energy sources — building the power, cooling, networking, and permitting infrastructure that higher-value compute (AI, HPC) requires but cannot justify building alone.

Concept credit: Brandon Quittem

Phase 1

Stranded Energy

Wasted, curtailed, uneconomic

Phase 2

Bitcoin Mining

Monetizes energy, builds infra

Phase 3

Infrastructure Matures

Power, cooling, permits ready

Phase 4

AI/HPC Arrives

Higher-value compute moves in

$38B+
Mining-to-AI Conversion NPV
VanEck estimates the net present value of converting Bitcoin mining infrastructure to AI/HPC compute exceeds $38 billion — demonstrating the massive dual-use value of this infrastructure.
What Converts
  • Power capacity — grid connections, substations, transformers
  • Cooling infrastructure — immersion, air, and liquid systems
  • Networking & fiber — low-latency connectivity already installed
  • Permits & land — years of zoning, environmental review, and construction already complete
Why It Matters
  • U.S. mining infrastructure becomes U.S. AI infrastructure — no new construction required
  • $38B+ in conversion deals already announced demonstrates market validation
  • Domestic AI compute reduces dependence on foreign data center capacity
  • Rural communities gain permanent high-tech infrastructure and jobs

Key Takeaway

Bitcoin mining is the pioneer species that builds the infrastructure AI needs. $38B+ in mining-to-AI conversion deals prove that investing in domestic mining today creates dual-use compute infrastructure for tomorrow.

7

Mandated Studies

The bill directs three critical studies to inform future policy

DOE AI Infrastructure Study
The Department of Energy is directed to study how Bitcoin mining infrastructure can be leveraged for AI and high-performance computing — including facility conversion, energy requirements, and grid impact.
DoD/Commerce Joint Study
A joint study by the Department of Defense and Department of Commerce on decentralized AI infrastructure and its national security applications — including resilient communications and cyber defense.
NIST Hardware Standards
NIST is tasked with developing hardware security research and standards for domestic mining equipment — ensuring American-made hardware meets the highest cybersecurity benchmarks.
8

Supporting Research

Peer-reviewed studies, policy guides, and strategic frameworks supporting the case for domestic Bitcoin mining

Grid Stability & Energy

Grid Stability Research
Peer-Reviewed
Bitcoin Mining as a Grid Stability Tool
Co-authored by former NYISO and ERCOT CEO Brad Jones. How mining functions as flexible load for grid stability.
Bitcoin Mining Guide
Bitcoin & Bitcoin Mining Legislator Guide
Covers economic, energy, and environmental impacts of mining including grid stability and wasted energy utilization.

Environmental & Methane Mitigation

Landfill Gas Research
Peer-Reviewed
Landfill Gas for Bitcoin Mining
Peer-reviewed study on integrating mining with landfill gas-to-energy systems to reduce methane emissions.
Carbon Footprint Research
Bitcoin Mining Research Agenda
Genesis research agenda for Bitcoin mining reviewing research needs alongside 15 co-authors.

Strategic Reserve & Inflation Hedge

Strategic Bitcoin Reserve Policy
Strategic Bitcoin Reserve Policy Guide
Framework for governments to design and implement a Bitcoin reserve as protection against inflation and economic shocks.
Bitcoin Reserve Whitepaper
Bitcoin Reserve Whitepaper
Analysis showing Rainy Day Funds relying on low-yield investments erode under inflation; Bitcoin as an alternative reserve asset.

Cyber Defense & National Security

External
Softwar: A Novel Theory on Power Projection
Major Jason Lowery's MIT thesis reframing Bitcoin's proof-of-work as electro-cyber power projection technology with direct implications for military overmatch and resilient communications.
External
DARPA Blockchain Secure Messaging
DARPA-funded development of blockchain-based secure messaging platform for decentralized military communications.

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