OREANDA-NEWS The law on the development of industrial mining, signed by Russian President Vladimir Putin on August 8, provoked a reaction in the United States. The news spread widely in the foreign media. And an open letter to US President Joe Biden and Democratic candidate Kamala Harris appeared on the Internet, signed by the heads of 50 largest American mining companies.

Representatives of the crypto industry have demanded to adopt state regulation of the industry, without which the sphere, in their opinion, cannot develop further. There has still been no response from the US authorities in the public field.

But the American authorities reacted to the news about the Russian law.

"We cannot afford to sit idly by because of the risk that cryptocurrency will slip abroad to other countries," said US Senate Majority Leader Chuck Schumer at the Crypto4Harris virtual conference. "I want to unite the efforts of members of the Senate on both sides and create momentum so that we can pass sensible legislation."
The senator promises to adopt such a law by the end of 2024, but only if Kamala Harris is elected president of the United States.

Analysts at the American bank TD Cowen met the statement of the senator from New York with skepticism. They noted that election promises should not be confused with real politics.

Kamala Harris is the current vice president of the United States, and the Democrats have a majority in the Senate. This allows you to give motion to any of the five mining bills that are under consideration by the US Congress. Moreover, one of them has already been adopted by the House of Representatives. But it has not yet been approved by the Senate and the president.

In Russia, the law on the regulation of industrial mining came into force on August 19 (part of the rules will come into force on November 1). And from September, an experimental legal regime for cross-border payments in cryptocurrency will begin to operate. Currently, the country is in second place in the world in terms of the volume of capacities involved in crypto mining and is significantly ahead of the United States in terms of the growth rate of the industry.

In addition, about 10 gigawatts of free power generation capacity are available in Russia. Such a surplus makes it possible to hypothetically increase the volume of mining four times, experts are sure. Electrification of data centers with energy obtained from processing associated petroleum gas opens up even more opportunities for Russian miners. About 10 percent of data processing centers in Russia are already operating on APG.

The systemic centralized regulation of mining in Russia, the surplus of electricity and the low cost of mining cryptocurrencies (almost two times lower than in the United States) — all this gives reason to believe that the country in the next three years will be able to overtake America and take the first place in mining in the world, experts believe. The expected growth rate, according to the Association of Industrial Mining, will be from 20 to 40 percent annually.