U.S. Senators Present Project to Revitalize Bitcoin Mining in the Country

Washington, DC – 30 March 2024Two U.S. senators, Bill Cassidy (R-LA) and Cynthia Lummis (R-WY), presented yesterday theMined in America ActThe proposal, which already has bipartisan support, proposes tax and regulatory incentives to attract companies in the industry, reducing the country’s dependence on nations like China and Kazakhstan, which currently dominate much of the global mining capacity.

A strategy to regain digital sovereignty

Bitcoin mining has always been a controversial topic in the US, partly due to the high energy costs and international competition.Mined in America ActThis is at a critical moment: according to theCambridge Bitcoin Electricity Consumption Index (CBECI)China still held about 21% of the global hash rate in January 2024, even after the ban on activity in the country in 2021.The bill aims to change this scenario by offering tax credits to miners operating on renewable energy and establishing operations in U.S. territories.

Senator Bill Cassidy, one of the authors of the proposal, said in an interview:“Bitcoin mining is a strategic industry.We need to ensure that it is developed safely, sustainably and within our borders.This not only strengthens energy security but also creates jobs and drives technological innovation.”Senator Cynthia Lummis, co-author and known for her work on defending digital assets in Congress, reiterated that the project is part of a larger strategy to position the US as a global leader in financial and technological innovation.

Market Impact and Sector Reactions

The presentation of the bill generated immediate reactions in the cryptocurrency market. Bitcoin, which had already been recording high in the year, reacted positively, with the price rising around3% in the first 12 hoursAfter the announcement, according to theCoinGeckoAnalysts attribute this move to the optimism that the measure could attract more investment to the U.S. sector, as well as reduce the pressure on the network due to the decentralization of mining.

However, experts warn that the success of the proposal will depend on its approval in Congress, a process that may face resistance, especially in an electoral year.Bitcoin Mining CouncilThe company, a global organization that brings together major miners, has already expressed support for the initiative. The CEO of Riot Platforms, one of the largest U.S. miners, said the measure could“Double U.S. mining capacity in up to two years.”

Another relevant point is the energy issue. The project encourages the use of renewable sources, such as solar and wind energy, for mining, aligned with the growing pressure for sustainability in the sector.White House Office of Science and Technology PolicyBitcoin mining in the U.S.0.5% of the country's total electricity consumptionA number that can grow significantly if the law is passed.

Brazil and the Future of Bitcoin Mining

As the U.S. advances its strategy, Brazil has also emerged in the global mining scenario.85% of the country’s electricity comes from hydropower, wind and solar sourcesAccording to data fromEmbrapaThe country has ideal conditions to become a sustainable mining hub.Bitfarmsand aHashdexThey are already operating in Brazil, taking advantage of low energy costs and favourable regulations.

However, the sector in Brazil still faces challenges, such as the lack of regulatory clarity and the bureaucracy for obtaining licenses.Areas of Solidarity (RJ)The author of Bill No. 2.303/2023, which seeks to regulate cryptocurrencies in Brazil, said measures like the US could serve as inspiration for the Brazilian Congress.“We need to attract investment to the sector, but in a sustainable and transparent way. Bitcoin mining can be a major vector of regional development, especially in states with energy potential, such as Pará and Rio Grande do Sul.”

The discussion about Bitcoin mining is gaining even greater relevance in Brazil after the announcement that the country could host, in 2025, aThe Bitcoin ConferenceThe event, which has already been held in Miami and Lisbon, could further boost the local ecosystem.

Conclusion: A strategic movement or just rhetoric?

O Mined in America ActIt represents an important step in the U.S. strategy to consolidate its position in the cryptocurrency market, especially after years of regulatory uncertainty and external dependence. If approved, the project could not only reduce the concentration of mining power in a few countries, but also boost innovation and adoption of sustainable technologies. For investors and enthusiasts, the measure is a sign that the sector is in transition, with governments looking for ways to adapt to an increasingly competitive market.

However, the success of the initiative still depends on factors such as the economic viability of the incentives and the ability to overcome political barriers.In the meantime, countries like Brazil, with their energy potential and growing interest in the sector, can benefit from this global movement, attracting investments and positioning themselves as viable alternatives to traditional mining.

One thing is certain: Bitcoin mining is no longer an exclusive subject for enthusiasts.It has become a matter of national security, technological innovation and sustainability — and the coming months will be decisive for defining the future of this sector.