The FCC has escalated its crackdown on Bitcoin mining hardware, seizing MicroBT and Canaan units after targeting Bitmain over AI chip restrictions.
Blockspace looked at some papers, including a notice of seizure for $5 million worth of goods. These papers show that the Federal Communications Commission has asked CBP to requisition MicroBT and Canaan units. This is more serious than the order to take Bitmain products last fall.
AI Chip Restrictions Spark Bitcoin Miner Seizures in the U.S.
In a video on X, Will Foxley from Blockspace said that the agency probably started taking Bitmain’s Antminer S21 and T21 models last year because they had AI chips from Sophgo, a company that is now restricted from doing business.
But it’s still not clear why MicroBT and Canaan were included, especially since Canaan is a public company in the U.S. and MicroBT is made in the U.S.
“Looks like the escalation is partially part of the Trump administration’s movement to onshore a lot of these sensitive industries around silicon,” Foxley said. “All these Bitcoin miners are using massive amounts of silicon, making massive amounts of units and importing them into the United States.”
Foxley also said that these arrests could make it harder for mining companies in North America to buy more ASICs, which would slow the growth of Bitcoin hashrate.
President Donald Trump has promised to back U.S. Bitcoin miners and wants all 1.042 million bitcoin to be mined in the U.S.
It looks like CBP used U.S. legal code sections like 19 USC 1595a(c)(2)(A) to excuse the seizures. These sections allow the seizure of unauthorized communications equipment.
The FCC is in charge of both domestic and foreign communications. Customs and Border Protection, which is part of the Department of Homeland Security, is in charge of U.S. imports.
In October 2022, the U.S. put strict limits on exports to stop China from getting advanced electronics. The goal was to increase production in the U.S. Trump has also promised to put tariffs of at least 10% on goods that come from China. For some goods, like ASIC mining tools, the tariffs could be as high as 60%.
When Trump first put taxes on Chinese goods in 2018, Bitmain moved its factories outside of China. The company, which makes parts for about 80% of ASIC miners, had already said it would move some production to the U.S. because trade limits were getting stricter.
At 37.8%, the U.S. has the most hashrate on the world Bitcoin network right now.
