US Policy Group Urges Bold Bitcoin Infrastructure Investment Plan

Policy Context

In late April 2025, the bipartisan Crypto Infrastructure Council (CIC)—comprised of former regulators, energy experts, and blockchain entrepreneurs—released a whitepaper advocating for $2 billion in federal grants and tax incentives to bolster domestic Bitcoin mining infrastructure. Their argument: ensuring that at least 30% of global Bitcoin hashing power resides on U.S. soil enhances energy grid stability, drives rural economic development, and counteracts foreign dominance in the mining sector.

Until now, U.S. mining has fluctuated between 18% and 22% of global hash rate, per Cambridge Bitcoin Electricity Consumption Index, compared to China’s pre-2021 peak of 50%. With more than 70% of American facilities relying on renewable sources like wind and solar, policymakers see an opportunity to fuse sustainability goals with economic growth.

Key Recommendations

• Federal Grants: Allocate $1 billion over five years to upgrade grid connections in West Texas and the Pacific Northwest—regions with abundant wind and hydro power.
• Tax Credits: Offer a 30% investment tax credit for operators deploying next-generation ASIC miners with at least 25% greater energy efficiency.
• Public-Private Partnerships: Establish pilot programs between the Department of Energy and private miners to test waste heat reuse and off-grid mining microgrids.
• Regulatory Clarity: Direct the Federal Energy Regulatory Commission (FERC) to define “crypto mining” as a load-serving resource eligible for grid services, enabling demand-response participation.

CIC Chair and former CFTC Commissioner Lisa Ellis emphasized, “These measures not only secure America’s ledger integrity but also create partnerships between miners and utilities to smooth out peak demand.”

Industry Response

Major mining firms signaled strong support. Marathon Digital Holdings’ CEO Fred Thiel stated, “Federal incentives lower barriers for next-gen facility deployment and help us repurpose stranded renewable energy sites.” Similarly, Riot Platforms announced plans to triple its North American capacity to 15 EH/s by 2027 if grants materialize.

Renewable energy stakeholders welcomed collaboration. The American Wind Energy Association noted that idle turbines during off-peak hours—often curtailed to protect transmission lines—could power mining rigs, creating a flexible demand sink. According to AWEA data, wind curtailment in ERCOT alone cost operators $350 million in 2024.

Critics, however, caution against unintended grid stress. “Mining’s 24/7 demand may outcompete traditional industrial loads,” warns grid expert Dr. Priya Singh of Lawrence Berkeley National Laboratory. “Robust demand-response frameworks are essential to prevent localized blackouts.”

Economic Implications

Proponents project that $2 billion in infrastructure investment could catalyze $7 billion in private capital, spurring up to 15,000 construction and operations jobs across rural America. A University of Texas study estimates county tax revenues could rise by 20% in regions hosting new data centers, boosting funds for schools and public services.

On the fiscal side, the 30% tax credit may reduce federal receipts by $600 million over five years—but advocates argue the program pays for itself through increased economic activity and reduced grid stabilization costs.

Moreover, enhanced domestic mining capacity could insulate Bitcoin markets from foreign regulatory shocks, stabilizing price volatility. With BTC’s realized price at $62,500 and a one-year realized volatility of 65%, greater U.S. participation may moderate abrupt swings driven by unilateral policy changes abroad.

Next Steps

The White House Office of Science and Technology Policy is reviewing the CIC whitepaper ahead of a June briefing with Senate Energy and Natural Resources Committee. If hearings proceed as planned, lawmakers could draft bipartisan legislation by Q3 2025. Stakeholders will monitor language around grid service compensation and environmental impact assessments.

As Washington deliberates, the mining industry is already prototyping off-grid solutions in Nevada and Georgia—seeking first-mover advantage. Should Congress act, the next frontier will be marrying American energy policy with digital asset sovereignty, positioning the U.S. at the helm of Bitcoin’s infrastructure revolution.