Republican Congressman from Iowa Zachary Nunn has called on US Treasury Secretary Scott Bessen to initiate a federal investigation into the activities of Bitmain Technologies and Cango Inc. The politician believes that the expansion of these Chinese companies’ presence in the American market could pose a serious threat to the national security of the country.
This is reported by Finway
Concerns About Ownership Transparency and Influence
In his letter, Nunn emphasized the Chinese origins of Bitmain and Cango and the complex, opaque ownership structures that, according to him, may complicate regulatory oversight. He also pointed to reports of a potential acquisition of Cango by Bitmain, which he believes increases potential risks for the US. Additionally, the politician noted that the companies are actively increasing their presence in the US market using complex financial structures that may conceal the true beneficiaries.
Bitmain and Cango have dismissed all allegations of wrongdoing. Representatives of Bitmain stated that rumors about the acquisition of Cango are unfounded and emphasized that they do not consider owning American power plants. The company labeled accusations of threatening critical infrastructure as baseless. Meanwhile, Cango stated that it does not comment on market rumors or potential merger deals.
The US cannot allow the Chinese government to gain uncontrolled access to critically important assets that support our economy
The Role of CFIUS and Impact on the Cryptocurrency Sector
The congressman’s request will now be reviewed by the Committee on Foreign Investment in the United States (CFIUS), which has the authority to assess potential threats to national security during the operations of foreign companies in the American market. Previously, this committee has blocked cryptocurrency-related projects, including mining farms near military bases, citing risks of espionage and influence on nuclear infrastructure.
Bitmain remains a leader in the production of cryptocurrency mining equipment worldwide, accounting for about 82% of the global ASIC miner market, according to data from the Cambridge Business School. The company is actively strengthening its presence in the US: recently, American Bitcoin Corp, linked to President Trump’s son Eric Trump, purchased Bitmain equipment for nearly $314 million.
Zachary Nunn emphasized the importance of collaboration with the Treasury to protect energy, digital markets, and the financial sovereignty of the US, highlighting that further oversight of foreign companies’ activities is crucial for national security.