Bitcoin mining meets the (ominous-sounding) Committee on Foreign Investment in the U.S. The Biden administration takes on junk fees. Block keeps on hearing the music. Join us on a 6-minute recap of the week in internet money.

STORIES OF THE WEEK

1) I Spy a Bitcoin Mine

When a Chinese company set up shop for crypto-mining in Cheyenne, Wyoming, there may have been more than meets the eye. Built just around the corner from a Microsoft data center supporting the Pentagon and a mile away from an Air Force base controlling nuclear missiles, the setup raised red flags. Microsoft didn't let it slide; they alerted the Committee on Foreign Investment in the U.S., highlighting the potential for "full-spectrum intelligence collection operations.”

The operation in Wyoming isn't isolated. There are Chinese-owned or operated Bitcoin mines in at least 12 states, collectively consuming as much energy as 1.5 million homes. Add the hardware factor: most of these operations run on Bitmain's machines, a Chinese company with opaque ties to the Communist Party.

Brian Harrell, a former assistant secretary for infrastructure protection at the Department of Homeland Security, pulled no punches: these setups could inflict "enormous stress" on the U.S. power grid, introducing risks of targeted blackouts and cyberattacks.

• 📊 The Cheyenne operation, at full capacity, would require enough electricity to power 55,000 homes

• 💬 “If Chinese infrastructure impacts key energy systems, it should immediately draw additional investigation and scrutiny," said Brian Harrell

What it means →

National security concerns and threats to the energy grid are not a great combo, politically speaking. And while the backlash to Bitcoin mining isn’t particularly new, the proliferation of new Bitcoin mining ventures in the U.S. (itself spurred by China banning much of its domestic mining in 2021) has begun pushing the question beyond energy and economics into the realm of national security. As a general rule, if you’re just a humble Chinese mining business trying to avoid CFIUS scrutiny, it’s best to choose a location that’s not right next to a nuclear missile silo.)

2) Taking fees to the junk heap

The Biden administration and the CFPB are taking on fees which could mean relief for consumers but pain (or at least more admin) for banks.

✅ Full Disclosure: Banks and credit unions have to provide basic information without charging fees. No more nickel-and-diming for checking balances or loan details.

❌ Hidden Fees: Financial companies will soon have to allow you to send your banking data to other institutions securely and without hidden fees. Basically, they can't hold your data hostage anymore.

This isn't just a shot across the bow for traditional banks; it's a message to fintechs as well. Up until now, some might argue fintechs have had a competitive edge with transparent pricing. But with these changes, the big banks will either have to play nice or lose customers. And losing customers in a world where account switching is becoming as easy as changing profile pictures? Not an option.

What it means →

You know that feeling when you’d find the perfect Airbnb at a good price? And then you go to check out and the price would double? That was no fun, and the Biden Administration knows it. And while tackling junk fees is a political winner, the potential rule around data portability could have an even bigger impact on fintechs. If data portability gets easier, it’s easy to imagine a whole suite of new and better tools being built to help customers manage their money.

—Gavin