Republican Congressman from Iowa, Zach Nunn, has urged US Treasury Secretary Scott Bessen to initiate a federal investigation into the activities of Bitmain Technologies and Cango Inc. He emphasized that the entry of these companies into the American market could pose a potential threat to national security due to their Chinese origins and “opaque” corporate structures.
This is reported by Business • Media
Concerns About Transparency and Oversight
In a letter to the Treasury Department, Nunn highlighted that Bitmain and Cango are actively expanding their presence in the US, utilizing complex ownership and financing structures. He believes this complicates effective oversight by regulators. He particularly noted reports of a potential acquisition of Cango by Bitmain, which, according to the politician, is a separate risk factor for the country’s critical infrastructure.
The US cannot allow the Chinese government to gain unchecked access to critical assets that support our economy.
Bitmain and Cango have officially denied the allegations. Bitmain stated that rumors regarding plans to acquire Cango are unfounded and also refuted intentions to purchase power plants in the US, calling such accusations “nonsensical.” For its part, Cango noted that it does not comment on market rumors and potential merger deals.
The Role of CFIUS and Market Impact
The case will now be reviewed by the Committee on Foreign Investment in the United States (CFIUS), which has the authority to assess the impact of foreign investments on national security. This committee has previously blocked projects in the cryptocurrency sector; notably, the Biden administration prohibited the operation of a mining farm near a US Air Force base in Wyoming due to espionage risks and potential interference with nuclear infrastructure.
Bitmain remains the largest manufacturer of cryptocurrency mining equipment in the world. According to data from the Cambridge Business School, the company supplies about 82% of all ASIC miners in the global market. In recent months, Bitmain has significantly strengthened its position in the US: American Bitcoin Corp, which has ties to President Trump’s son, Eric Trump, purchased equipment from Bitmain’s subsidiary for nearly $314 million.
Zach Nunn stated his intention to collaborate with the US Treasury Department to maximize protection for the energy sector, digital markets, and the country’s financial sovereignty from external influence.
Earlier reports indicated that the difficulty of mining Bitcoin has increased by nearly 5%, reaching a new historical high.