Republican Senators Cynthia Lummis and Bill Cassidy introduced the Mined in America Act on March 31, a bill designed to transform Bitcoin mining into a strategic sector of the American economy. The core goal is to reduce critical dependence on Chinese-made equipment and enshrine the strategic Bitcoin reserve in federal law for the first time.
Three pillars of the bill
The Mined in America Act is built on three key pillars. The first is the creation of a voluntary certification program for mining operations under the Department of Commerce. Certified companies must gradually phase out equipment manufactured in adversary nations, with a full transition required by the end of the decade.
The second pillar focuses on domestic manufacturing support. The bill directs the National Institute of Standards and Technology (NIST) and the Manufacturing Extension Partnership to help American manufacturers develop secure and energy-efficient mining equipment - from ASIC chips to cooling systems.
The third and most significant element is the codification of the strategic Bitcoin reserve. Trump's executive order establishing the reserve would gain the force of federal law, meaning no future president could reverse it by simple decree, only through a Congressional vote.
97% of equipment from China - a national security threat
The mining equipment situation presents a striking paradox. The United States controls approximately 38% of global Bitcoin hash rate, yet 97% of ASIC devices come from just two Chinese manufacturers - Bitmain and MicroBT. This imbalance effectively makes the world's largest mining industry hostage to foreign supply chains.
The reality of this threat became evident in late 2024, when US Customs and Border Protection blocked shipments of thousands of Bitmain ASIC devices at American ports. The months-long blockade disrupted operations of dozens of mining companies, caused millions in losses, and exposed the entire industry's vulnerability to decisions by foreign manufacturers and regulators.
How the strategic reserve will work
The strategic Bitcoin reserve will be established within the US Treasury Department. The federal government already holds a significant amount of BTC seized in criminal cases, but the bill creates a legal framework for systematic accumulation and long-term storage of these assets.
Two mechanisms are envisioned for growing the reserve. First, revenue from staking and airdrops associated with other seized digital assets will be automatically channeled into Bitcoin purchases. Second, direct purchases from certified American miners, who will receive substantial tax incentives for selling BTC to the government instead of the open market.
Tax incentives: a new sales channel for miners
Currently, most mined Bitcoin ends up on the open market, where miners sell BTC for dollars to cover operational costs, electricity, rent, and equipment maintenance. The Mined in America Act offers an alternative: certified miners can sell freshly mined BTC directly to the strategic reserve with full capital gains tax exemption.
With rising mining costs - miners currently lose up to $19,000 per BTC due to record network difficulty, tax benefits could become a decisive survival factor for American operations. In effect, the bill creates a budget-neutral mechanism: the reserve grows without the Treasury making direct market purchases.
Outlook and market impact
The Mined in America Act is not an isolated initiative but part of a broader crypto-legislative agenda in Congress alongside the PARITY Act and CLARITY Act addressing stablecoins and digital asset classification. Bipartisan support from senators representing Wyoming and Louisiana improves the bill's chances of advancing through relevant committees.
For the market, codifying the strategic reserve means steady additional government demand for Bitcoin and a potential reduction in BTC available on the open market. American mining companies, in turn, stand to gain a competitive advantage through direct sales channels and tax preferences - a development that could accelerate the growth of the US share in global hash rate and reduce dependence on Chinese ASIC manufacturers.
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