- Trump aims to have all Bitcoin mining conducted within the US.
- A proposed bill would impose penalties on miners exceeding emissions limits.
- Tariffs and diminishing profitability are already pressuring miners to reduce operations or relocate.
Donald Trump’s goal of centralizing Bitcoin mining in the US may conflict with a new Democratic initiative aimed at mitigating the industry’s carbon footprint.
The Clean Cloud Act, proposed by Senators Sheldon Whitehouse and John Fetterman, intends to tackle the increasing energy demands from cryptocurrency miners and data centers.
If enacted, it would introduce a carbon intensity fee in 2026 for operations exceeding regional emissions standards—a threshold that will decrease annually until reaching zero by 2035.
The bill’s sponsors argue that the escalating energy demands of miners are forcing utilities to increase rates and restart fossil fuel plants.
“Energy-hungry data centers and cryptomining operations are overburdening our already taxed power grid,” Senator Whitehouse stated. “The Clean Cloud Act will prompt utilities and the growing crypto and AI sectors to invest in new clean energy sources, helping to ensure the possibility of a net-zero grid.”
This approach contrasts sharply with Trump’s stance, who expressed last year that he desires “all remaining Bitcoin to be produced in the USA.”
He has also advocated for Bitcoin mining as a means of achieving energy independence and enhancing national security, arguing that it could support efforts in the AI arms race and counteract central bank digital currencies.
Trade War Pressures
However, this ambition is contending with various economic pressures, some stemming from Trump’s actions.
The impact of Trump’s trade war has been harsh on miners, with tariffs on equipment from China reaching as high as 131%.
Since March, profitability in Bitcoin mining has sharply decreased, with hashprice falling to $40—a figure that Luxor CEO Nick Hansen referred to as a “bear case.”
This metric indicates the revenue miners earn per unit of computing power.
“Most miners were considering $40 as their worst-case scenario,” Hansen informed DL News, noting that companies are now racing to lower costs or move their operations.
The proposed emissions legislation could further tighten profit margins, particularly for miners dependent on coal or gas, although some argue it may ultimately benefit those with more environmentally friendly operations.
Kyle Baird is DL News’ Weekend Editor. Have a tip? Reach out at kbaird@dlnews.com.
