,,ii #aaith ,,congress #b;d ,session ,s4 #dbea ,,in ,,the ,,senate ,,of ,,the ,,united ,,states ,march #bf1 #bjbf,mr4 ,cassidy 7for himself and ,ms4 ,lummis7 introduced the following bill2 which was read twice and referred to the ,committee on ,finance ,a ,,bill ,to direct the ,secretary of ,commerce to establish a voluntary ,mined in ,america ,certification ,program1 to use ,federal programs and authorities to promote the replacement of mining hardware related to foreign adversaries with compute infrastructure manufactured in the ,united ,states or friendly nations1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,mined in ,america ,act of #bjbf4 #b4 ,findings2 purpose 7a7 ,findings ,congress finds that-- 7#a7 blockchain and digital asset technologies serve an essential role in the future economic1 technological1 and strategic interests of the ,united ,states1 as reflected in official statements from the ,president1 bipartisan action in ,congress1 and recent legislation establishing oversight and regulatory frameworks for digital assets2 7#b7 ,bitcoin is the original digital asset1 has operated through an open1 decentralized network with no central authority for more than #ae years1 and continues to demonstrate technical resilience1 economic relevance1 and functional independence2 7#c7 the establishment and management of a strategic reserve of ,bitcoin by the ,federal ,government reinforces the continuing role in the national interest and the important long-term strategic value of ,bitcoin2 7#d7 the reliability of the ,bitcoin blockchain depends on a decentralized validation process and a globally distributed infrastructure1 but a substantial portion of mining hardware currently in use is manufactured by companies related to foreign adversaries1 creating national security and operational integrity risks2 7#e7 the ability of the ,united ,states to lead in ,bitcoin and digital asset innovation requires that critical blockchain infrastructure1 including mining hardware and consensus software1 be developed1 operated1 and maintained within the ,united ,states1 or friendly nations1 and free from control by entities related to foreign adversaries2 7#f7 ,bitcoin mining operators in the ,united ,states have contributed materially to domestic artificial intelligence capabilities by converting existing facilities and infrastructure to support machine learning1 inference1 and high-density compute operations2 and 7#g7 the replacement of mining hardware related to foreign adversaries with compute infrastructure manufactured in the ,united ,states1 or friendly nations1 is a necessary national objective4 7b7 ,purpose ,the purpose of this ,act is to facilitate the objective described in subsection 7a77#g7 through the use of existing ,federal programs and authorities4 #c4 ,definitions ,in this ,act3 7#a7 ,certification program ,the term certification program means the ,mined in ,america ,certification ,program established under section #d7;a74 7#b7 ,demand response2 demand-responsive ,the terms demand response and demand-responsive mean the capability of a facility1 including a distributed energy system or controllable load1 to adjust electricity consumption in response to price signals1 grid reliability needs1 or market incentives to enhance grid efficiency and resilience4 7#c7 ,foreign adversary ,the term foreign adversary has the meaning given the term covered nation in section #dhgb7;f7 of title #aj1 ,united ,states ,code4 7#d7 ,friendly nation ,the term friendly nation means a foreign country that-- 7,a7 is not a foreign adversary2 and 7,b7 the ,secretary of ,state designates as an ally or partner of the ,united ,states for purposes of this ,act4 7#e7 ,high-density compute ,the term high-density compute means a computational operation or facility characterized by high power density and intensive processing workloads1 including those used for artificial intelligence training1 inference1 blockchain validation1 advanced data processing1 and other energy intensive compute tasks4 7#f7 ,mining facility ,the term mining facility means a physical site that houses and operates specialized computer hardware for the purpose of performing proof-of-work mining1 including associated power1 cooling1 and network infrastructure4 7#g7 ,mining pool ,the term mining pool means a group of participants in a proof-of-work mining network that-- 7,a7 combine their computational resources over a network to increase the probability of validating a block2 and 7,b7 share any resulting rewards in proportion to the contributed hash power of each participant4 7#h7 ,proof-of-work mining ,the term proof-of-work mining means the operation of specialized hardware or computing systems to validate transactions and secure decentralized blockchain networks by solving cryptographic puzzles1 resulting in the issuance of new units of a digital asset as a reward4 7#i7 ,secretary ,the term ,secretary means the ,secretary of ,commerce4 #d4 ,mined in ,america ,certification ,program 7a7 ,establishment 7#a7 ,in general ,the ,secretary shall establish a voluntary certification program1 to be known as the ,mined in ,america ,certification ,program1 to certify mining facilities and mining pools that meet the requirements established under this section4 7#b7 ,scope ,a certification under the certification program-- 7,a7 shall not confer any regulatory license or waiver of legal requirements under any other provision of law 7including regulations72 7,b7 may serve as a basis for eligibility for1 priority for1 or participation in a ,federal loan1 grant1 reimbursement1 or procurement program1 in accordance with applicable law or regulations2 and 7,c7 shall not be required for any mining facility or mining pool except as a condition of eligibility for1 priority for1 or participation in a program described in subparagraph 7,b71 in accordance with applicable law or regulations4 7b7 ,certification criteria and administration 7#a7 ,in general ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary shall promulgate regulations governing the certification of mining facilities and mining pools under the certification program4 7#b7 ,eligibility ,to be eligible for certification under the certification program-- 7,a7 the proof-of-work mining operations of the mining facility or mining pool shall be physically located within the ,united ,states or a friendly nation2 7,b7 in the case of the certification of a mining pool1 the mining pool-- 7i7 shall be headquartered and operated in the ,united ,states or a friendly nation2 and 7ii7 shall not be owned1 controlled1 or subject to undue influence by an entity related to a foreign adversary2 7,c7 in the case of the certification of a mining facility1 the mining facility-- 7i7 shall not be owned1 controlled1 or subject to undue influence by an entity related to a foreign adversary2 and 7ii7 shall participate in a mining pool described in subparagraph 7,b72 7,d7 the mining facility or mining pool shall document and attest to compliance with the applicable hardware sourcing standards described in paragraph 7#c72 7,e7 the mining facility or mining pool shall maintain cybersecurity protocols consistent with minimum standards established by the ,secretary1 including protection of network systems1 private keys1 remote access tools1 and physical facilities2 and 7,f7 the mining facility or mining pool shall satisfy any additional criteria that the ,secretary determines to be necessary to uphold the integrity of the certification4 7#c7 ,hardware sourcing standards 7,a7 ,in general ,to be eligible for certification under the certification program1 a mining facility or mining pool shall be in compliance with the following hardware sourcing standards3 7i7 ,beginning on ,january #a1 #bjbg1 the mining facility or mining pool may not purchase any proof-of-work mining equipment manufactured by any entity related to any foreign adversary4 7ii7 ,beginning on ,january #a1 #bjbh1 not more than #ge percent of the active proof-of-work mining hardware of the mining facility or mining pool may be manufactured by an entity related to a foreign adversary4 7iii7 ,beginning on ,january #a1 #bjbi1 not more than #ej percent of the active proof-of-work mining hardware of the mining facility or mining pool may be manufactured by an entity related to a foreign adversary4 7iv7 ,beginning on ,january #a1 #bjcj1 #j percent of the active proof-of-work mining hardware of the mining facility or mining pool may be manufactured by an entity related to a foreign adversary4 7,b7 ,initial certifications ,the ,secretary may issue a certification under the certification program before ,january #a1 #bjbg1 if-- 7i7 the applicable mining facility or mining pool has not purchased any proof-of-work mining equipment manufactured by any entity related to any foreign adversary since the date of enactment of this ,act2 and 7ii7 the operator of the applicable mining facility or mining pool submits to the ,secretary a plan for achieving compliance with the hardware sourcing standards described in subparagraph 7,a74 7,c7 ,preferred certifications ,during the period beginning on ,january #a1 #bjbg1 and ending on ,december #ca1 #bjbi1 the ,secretary may designate a certification of a mining facility or mining pool under the certification program as a preferred certification for ,federal program eligibility if not more than #be percent of the active proof-of-work mining hardware of the mining facility or mining pool is manufactured by an entity related to a foreign adversary4 7,d7 ,recognition of infrastructure conversion ,for the purposes of determining compliance with subparagraph 7,b7 or 7,c71 the ,secretary shall consider proof-of-work mining hardware related to foreign adversaries to be removed from active deployment if the operator of the mining facility or mining pool demonstrates that the hardware has been replaced1 repurposed1 or retired in favor of proof-of-work mining hardware manufactured in the ,united ,states or a friendly nation1 including infrastructure deployed for artificial intelligence training1 inference1 or grid-responsive computational operations4 7#d7 ,duration2 renewal ,a certification under the certification program-- 7,a7 shall be valid for a period of not more than #b years2 and 7,b7 may be renewed only on a demonstration of continued compliance with all applicable requirements under this section4 7#e7 ,information sharing ,in carrying out the certification program1 the ,secretary may share information with1 or request information from1 the ,secretary of ,energy or the ,secretary of ,agriculture4 7c7 ,application and review process 7#a7 ,in general ,in administering the certification program1 the ,secretary shall establish an application and review process for certification4 7#b7 ,applications 7,a7 ,in general ,to apply for certification under the certification program1 an operator of a proof-of-work mining facility or mining pool shall submit to the ,secretary an application1 which shall contain information necessary for the ,secretary to determine eligibility under subsection 7b74 7,b7 ,disclosure ,an application submitted under subparagraph 7,a7-- 7i7 shall disclose ownership and control information sufficient to identify any person exercising control over the proof-of-work mining operations of the applicant2 and 7ii7 shall not use any shell companies1 passthrough entities1 or nominee arrangements to obscure ownership or influence by a foreign adversary4 7d7 ,registry ,the ,secretary shall maintain a publicly accessible registry of mining facilities and mining pools certified under the certification program1 including-- 7#a7 the effective dates of certification and renewal1 if applicable2 and 7#b7 the applicable hardware sourcing standards under subsection 7b77#c7 with which the mining facility or mining pool is compliant1 including whether the certification is a preferred certification under subsection 7b77#c77;,c74 7e7 ,federal program eligibility 7#a7 ,in general ,the head of a ,federal agency that administers a loan1 grant1 reimbursement1 or procurement program for which eligibility1 priority1 or participation is based on certification under the certification program may rely on the registry maintained under subsection 7d7 to determine the eligibility1 priority1 or participation of an entity in that program1 in accordance with applicable law 7including regulations74 7#b7 ,requirement ,an entity shall not be granted eligibility for1 priority for1 or participation in a loan1 grant1 reimbursement1 or procurement program for which that eligibility1 priority1 or participation is based on certification under the certification program unless the entity holds a valid certification under the certification program4 7f7 ,confidentiality 7#a7 ,in general ,in carrying out the certification program1 the ,secretary shall safeguard the confidentiality of all proprietary operational data1 financial records1 trade secrets1 and personally identifiable information submitted in connection with a certification4 7#b7 ,exemption from ,,foia ,information in the registry maintained under subsection 7d7 shall be exempt from disclosure under section #eeb of title #e1 ,united ,states ,code4 7g7 ,oversight and reporting 7#a7 ,in general ,the ,secretary shall promulgate regulations to ensure transparency of1 compliance with1 and enforcement under the certification program1 including-- 7,a7 requirements for certified mining facilities and mining pools to submit periodic reports verifying continuing compliance with the requirements under subsection 7b72 7,b7 procedures for the suspension or revocation of a certification in the case of a material misrepresentation1 noncompliance1 or fraud2 and 7,c7 regulations relating to audits and inspections under paragraph 7#b74 7#b7 ,audits or inspections ,the ,secretary shall conduct audits or inspections of mining facilities and mining pools certified under the certification program as necessary to ensure compliance with this section4 7#c7 ,publication of data ,the ,secretary shall publish aggregate1 nonconfidential data relating to certifications of mining facilities and mining pools and compliance with this section sufficient to inform ,federal agencies and the public of trends in certifications and compliance4 7h7 ,rule of construction ,nothing in this section may be construed to confer upon the ,secretary any regulatory authority over digital asset markets or transactions4 #e4 ,program eligibility for certified compute infrastructure projects 7a7 ,department of ,energy title ,,xvii loan guarantees 7#a7 ,in general ,section #agjc7;b7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeac7;b77 is amended by adding at the end the following3 7#ad7 ,projects carried out by entities that are certified under section #d of the ,mined in ,america ,act of #bjbf and involve #a or more of the following activities3 7,a7 ,the replacement of proof-of-work mining 7as defined in section #c of the ,mined in ,america ,act of #bjbf7 hardware related to foreign adversaries 7as defined in that section7 with compute infrastructure that is manufactured in the ,united ,states or a friendly nation 7as defined in that section71 including equipment used for blockchain validation1 artificial intelligence training1 or high-efficiency data processing4 7,b7 ,the conversion of an existing mining operation or data center into a grid-interactive or demand-responsive 7as defined in section #c of the ,mined in ,america ,act of #bjbf7 computing facility that uses infrastructure manufactured in the ,united ,states or a friendly nation 7as so defined74 7,c7 ,the deployment of computing systems that enable load shifting1 flexible demand1 or emissions reduction in coordination with a regional transmission organization1 electric utility1 or demand response 7as defined in section #c of the ,mined in ,america ,act of #bjbf7 market4 4 7#b7 ,rulemaking ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary of ,energy shall issue rules to implement the amendment made by paragraph 7#a71 including procedures for verifying the eligibility of projects described in paragraph 7#ad7 of section #agjc7;b7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeac7;b771 establishing documentation requirements1 coordinating with the ,secretary to confirm certification status under section #d1 and identifying any emissions or energy performance standards necessary to satisfy the objectives of title ,,xvii of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeaa et seq474 7#c7 ,rule of construction ,nothing in the amendment made by paragraph 7#a7 alters or waives any other requirement for project approval under section #agjc of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeac74 7b7 ,department of ,energy infrastructure reinvestment program 7#a7 ,in general ,section #agjf7;a7 of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeag7;a77 is amended-- 7,a7 in paragraph 7#b71 by striking or at the end2 7,b7 in paragraph 7#c71 by striking the period at the end and inserting 2 or2 and 7,c7 by adding at the end the following3 7#d7 are carried out by entities described in section #agjc7;b77#ad7 and involve-- 7,a7 an activity described in subparagraph 7,a7 or 7,b7 of that section2 or 7,b7 the repurposing of energy infrastructure previously used in connection with foreign manufactured crypto mining hardware into facilities that reduce net energy intensity1 improve flexibility in load management1 or provide computing for strategic industrial applications4 4 7#b7 ,rulemaking ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary of ,energy shall issue rules to implement the amendment made by paragraph 7#a71 including documentation requirements1 technical criteria for demonstrating infrastructure conversion1 emissions or energy performance metrics1 and procedures for coordinating with the ,secretary to confirm certification status under section #d4 7#c7 ,rule of construction ,nothing in the amendment made by paragraph 7#a7 alters or waives any other requirement for project approval under section #agjf of the ,energy ,policy ,act of #bjje 7#db ,u4,s4,c4 #afeag74 7c7 ,department of ,energy smart grid investment grants 7#a7 ,in general ,section #acjf of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agchf7 is amended-- 7,a7 in subsection 7a71 by striking of qualifying ,smart ,grid investments4 and inserting the following3 8of-- 7#a7 qualifying smart grid investments2 and 7#b7 projects for the deployment of ,mined in ,america grid-interactive infrastructure4 2 7,b7 in subsection 7b7-- 7i7 by redesignating paragraphs 7#a7 through 7#ad7 as clauses 7i7 through 7xiv71 respectively1 and indenting appropriately2 and 7ii7 by striking the subsection designation and heading and all that follows through include in the matter preceding clause 7i7 7as so redesignated7 and inserting the following3 7b7 ,definitions ,in this section3 7#a7 ,demand response2 demand-responsive ,the terms demand response and demand-responsive have the meaning given the terms in section #c of the ,mined in ,america ,act of #bjbf4 7#b7 ,friendly nation ,the term friendly nation has the meaning given the term in section #c of the ,mined in ,america ,act of #bjbf4 7#c7 ,grid-responsive infrastructure ,the term grid-responsive infrastructure includes hardware1 software1 and control systems that support #a or more of the following functions3 7,a7 ,load curtailment or flexible demand response in coordination with a grid operator1 electric utility1 or demand response provider4 7,b7 ,integration of localized energy storage1 smart metering1 or real-time load control technologies that reduce peak demand or improve grid reliability4 7,c7 ,cybersecurity protections to safeguard grid-facing compute infrastructure1 including systems used to manage energy telemetry1 remote access1 or distributed power systems4 7#d7 ,mined in ,america grid-interactive infrastructure ,the term ,mined in ,america grid-interactive infrastructure means grid-responsive infrastructure that-- 7,a7 is manufactured in the ,united ,states2 and 7,b7 is or will be deployed at a facility-- 7i7 located in the ,united ,states or a friendly nation2 7ii7 the owners and operators of which are certified under section #d of the ,mined in ,america ,act of #bjbf2 and 7iii7 that is engaged in-- 7,i7 proof-of-work mining operations using compute infrastructure manufactured in the ,united ,states or a friendly nation2 or 7,,ii7 artificial intelligence training or inference using compute infrastructure manufactured in the ,united ,states or a friendly nation4 7#e7 ,proof-of-work mining ,the term proof-of-work mining has the meaning given the term in section #c of the ,mined in ,america ,act of #bjbf4 7#f7 ,qualifying smart grid investment 7,a7 ,in general ,the term qualifying smart grid investment includes 2 7,c7 in subsection 7c7-- 7i7 in paragraph 7#c71 by striking ,smart ,grid ,information ,standard under section #acjg 7paragraph 7#ag7 of section #aaa7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh7 and inserting smart grid information standard under paragraph 7#ai7 of section #aaa7;d7 of the ,public ,utility ,regulatory ,policies ,act of #aigh 7#db ,u4,s4,c4 #bfba7;d772 7ii7 in paragraph 7#i71 by striking ,qualifying ,smart ,grid ,investments and inserting qualifying smart grid investments2 7iii7 by redesignating paragraphs 7#a7 through 7#i7 as clauses 7i7 through 7ix71 respectively1 and indenting appropriately2 and 7iv7 by striking the subsection designation and heading and all that follows through do not include in the matter preceding clause 7i7 7as so redesignated7 and inserting the following3 7,b7 ,exclusions ,the term qualifying smart grid investment does not include 2 7,d7 in subsection 7d7-- 7i7 by redesignating paragraphs 7#a7 through 7#af7 as clauses 7i7 through 7xvi71 respectively1 and indenting appropriately2 and 7ii7 by striking the subsection designation and heading and all that follows through means in the matter preceding clause 7i7 7as so redesignated7 and inserting the following3 7#f7 ,smart grid function ,the term smart grid function means 2 7,e7 in subsection 7e7-- 7i7 in paragraph 7#a7-- 7,i7 by striking 7#a7 ,the ,secretary shall and all that follows through proposals-- in the matter preceding subparagraph 7,a7 and inserting the following3 7#a7 ,in general ,the ,secretary shall-- 2 7,,ii7 by indenting subparagraphs 7,a7 through 7,e7 appropriately2 7,,iii7 in subparagraph 7,c71 by striking investments1 and and inserting investments or ,mined in ,america grid-interactive infrastructure1 and1 if applicable12 and 7,,iv7 in subparagraph 7,d71 by striking investments which have received grants and inserting investments and ,mined in ,america grid-interactive infrastructure for which grants have been provided2 and 7ii7 in paragraph 7#b71 by striking 7#b7 ,the ,secretary and inserting the following3 7#b7 ,discretion ,the ,secretary 2 7,f7 in subsections 7b7 through 7e71 by striking ,smart ,grid each place it appears and inserting smart grid2 7,g7 in subsection 7f71 by striking for fiscal years #bjjh through #bjab2 7,h7 by redesignating subsections 7a71 7b71 7e71 and 7f7 as subsections 7b71 7a71 7c71 and 7e71 respectively1 and moving the subsections so as to appear in alphabetical order2 and 7,i7 by inserting after subsection 7c7 7as so redesignated7 the following3 7d7 ,guidance on ,mined in ,america grid-,interactive infrastructure 7#a7 ,in general ,not later than #ahj days after the date of enactment of the ,mined in ,america ,act of #bjbf1 the ,secretary shall issue guidance relating to the provision of grants under this section for projects for the deployment of ,mined in ,america grid-interactive infrastructure4 7#b7 ,requirement ,the guidance issued under paragraph 7#a7 shall-- 7,a7 identify ,mined in ,america grid-interactive infrastructure for which a grant provided under this subsection may be used2 and 7,b7 establish procedures for verifying the certification of the owners and operators of the applicable facility under section #d of the ,mined in ,america ,act of #bjbf1 in coordination with the ,secretary of ,commerce4 4 7#b7 ,rule of construction ,nothing in this subsection or an amendment made by this subsection waives1 or may be construed to waive1 any cost-share1 technical1 or emissions performance requirement applicable to a grant awarded under section #acjf of the ,energy ,independence and ,security ,act of #bjjg 7#db ,u4,s4,c4 #agchf74 7d7 ,rural ,energy for ,america ,program 7#a7 ,in general ,section #ijjg of the ,farm ,security and ,rural ,investment ,act of #bjjb 7#g ,u4,s4,c4 #hajg7 is amended-- 7,a7 in subsection 7a7-- 7i7 in paragraph 7#b71 by striking the period at the end and inserting 2 and2 7ii7 by redesignating paragraphs 7#a7 and 7#b7 as subparagraphs 7,a7 and 7,b71 respectively1 and indenting appropriately2 7iii7 in the matter preceding subparagraph 7,a7 7as so redesignated71 by striking for agricultural producers and inserting the following3 8for-- 7#a7 agricultural producers 2 and 7iv7 by adding at the end the following3 7#b7 compute-focused entities through grants and loan guarantees1 in accordance with subsection 7d74 2 7,b7 be redesignating subsections 7d7 through 7f7 as subsections 7e7 through 7g71 respectively2 7,c7 by striking subsection 7f7 each place it appears and inserting subsection 7g72 and 7,d7 by inserting after subsection 7c7 the following3 7d7 ,certified compute infrastructure in rural areas 7#a7 ,in general ,the ,secretary shall make grants and loan guarantees to eligible entities described in paragraph 7#b7 to carry out projects described in paragraph 7#c74 7#b7 ,eligible entity ,an eligible entity under this subsection is an entity that-- 7,a7 is certified under section #d of the ,mined in ,america ,act of #bjbf2 and 7,b7 is located in a rural area4 7#c7 ,projects ,a project referred to in paragraph 7#a7 shall involve #a or more of the following activities3 7,a7 ,the deployment of energy storage1 load control systems1 or demand-responsive compute infrastructure that enables the eligible entity to curtail load1 shift demand1 or otherwise contribute to local grid reliability4 7,b7 ,the support of the retention or creation of employment in a rural area through the operation or expansion of a certified compute facility4 7,c7 ,on-site renewable energy generation or emissions-reducing technology that supports energy efficiency or peak-load mitigation4 7#d7 ,local hiring requirement ,an eligible entity under paragraph 7#b7 receiving assistance under this subsection shall employ at least #a individual who resides within the county or equivalent jurisdiction in which the project is located4 4 7#b7 ,rulemaking ,not later than #ahj days after the date of enactment of this ,act1 the ,secretary of ,agriculture shall issue guidance on implementing the amendment made by paragraph 7#a71 including procedures for verifying local employment and coordinating with the ,secretary to confirm certification status under section #d4 7#c7 ,rule of construction ,nothing in the amendment made by paragraph 7#a7 alters or waives any requirement of the program under section #ijjg of the ,farm ,security and ,rural ,investment ,act of #bjjb 7#g ,u4,s4,c4 #hajg74 #f4 ,federal acquisition of ,bitcoin 7a7 ,capital gains exemption for certified sellers ,part ,,iii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting before section #adj the following new section3 #aci,m4 ,bitcoin sales for strategic reserve 7a7 ,in general ,in the case of a certified ,bitcoin miner1 gross income shall not include any gain from the sale or exchange of qualified ,bitcoin to the ,united ,states for deposit in the ,strategic ,bitcoin ,reserve4 7b7 ,certified ,bitcoin miner ,for purposes of this section1 the term certified ,bitcoin miner means any person who is certified pursuant to subparagraph 7,a77iv7 or 7,c7 of section #d7;b77#c7 of the ,mined in ,america ,act of #bjbf4 7c7 ,qualified ,bitcoin ,for purposes of this section1 the term qualified ,bitcoin means ,bitcoin which was mined by the certified ,bitcoin miner or acquired through direct reward for participation in a mining pool meeting the requirements of section #d7;b77#b77;,b7 of the ,mined in ,america ,act of #bjbf4 4 7b7 ,clerical amendment ,the table of sections of part ,,iii of subchapter ,b of chapter #a of the ,internal ,revenue ,code of #aihf is amended by inserting before the item relating to section #adj the following new item3 ,sec4 #aci,m4 ,bitcoin sales for strategic reserve4 4 #g4 ,department of ,energy study on compute-based load management 7a7 ,study required ,the ,secretary of ,energy shall conduct a study to assess the load-management capabilities and grid-balancing potential of proof-of-work mining operations and high-density compute facilities located in the ,united ,states4 7b7 ,scope of study ,the study under subsection 7a7 shall evaluate-- 7#a7 the ability of proof-of-work mining operations and high-density compute facilities-- 7,a7 to reduce electricity consumption during periods of peak demand2 7,b7 to shift load in coordination with grid operators2 or 7,c7 to participate in demand response and grid reliability programs2 7#b7 the technologies1 energy infrastructure1 and contractual mechanisms that support flexible operation of high-density compute workloads2 and 7#c7 the emissions impacts1 energy efficiency benefits1 and market integration potential associated with the deployment of grid-interactive compute infrastructure in various geographic and regulatory contexts4 7c7 ,consultation 7#a7 ,in general ,in carrying out the study under subsection 7a71 the ,secretary of ,energy shall consult with-- 7,a7 the ,secretary2 7,b7 the ,federal ,energy ,regulatory ,commission2 and 7,c7 at least #a ,regional ,transmission ,organization or ,independent ,system ,operator 7as those terms are defined in section #c of the ,federal ,power ,act 7#af ,u4,s4,c4 #gif774 7#b7 ,requirement ,the ,secretary of ,energy1 the ,secretary of ,defense1 and the ,secretary shall coordinate to enhance efficiency and avoid duplication with respect to the study required under subsection 7a7 and the study required under section #h7;a74 7d7 ,reports ,the ,secretary of ,energy shall submit to the ,committee on ,energy and ,natural ,resources of the ,senate1 the ,committee on ,commerce1 ,science1 and ,transportation of the ,senate1 and the ,committee on ,energy and ,commerce of the ,house of ,representatives-- 7#a7 an interim report on the findings of the study under subsection 7a7 not later than #a year after the date of enactment of this ,act2 and 7#b7 a final report on the findings of that study not later than #b years after that date of enactment4 #h4 ,strategic study on decentralized artificial intelligence infrastructure 7a7 ,study required ,the ,secretary of ,defense and the ,secretary shall jointly conduct a study on the national strategic relevance of decentralized artificial intelligence infrastructure that operates over blockchain-based or distributed networks4 7b7 ,study contents ,the study required under subsection 7a7 shall include the following3 7#a7 ,an evaluation of decentralized artificial intelligence systems that utilize distributed computing resources and cryptographically secured protocols4 7#b7 ,an assessment of the infrastructure resilience1 censorship resistance1 and national security implications of such systems compared to centralized models of artificial intelligence deployment4 7#c7 ,an analysis of the potential economic1 workforce1 and infrastructure development benefits of promoting decentralized compute models within the ,united ,states4 7#d7 ,recommendations for standards1 security protocols1 or national policy initiatives to support the domestic development and deployment of decentralized artificial intelligence systems4 7c7 ,interim and final reports 7#a7 ,interim report ,not later than #a year after the date of enactment of this ,act1 the ,secretary of ,defense and the ,secretary shall jointly submit to the ,committee on ,armed ,services and the ,committee on ,commerce1 ,science1 and ,transportation of the ,senate and the ,committee on ,armed ,services and the ,committee on ,energy and ,commerce of the ,house of ,representatives an interim report on the findings of the study required under subsection 7a74 7#b7 ,final report ,not later than #b years after the date of enactment of this ,act1 the ,secretary of ,defense and the ,secretary shall jointly submit to the ,committee on ,armed ,services and the ,committee on ,commerce1 ,science1 and ,transportation of the ,senate and the ,committee on ,armed ,services and the ,committee on ,energy and ,commerce of the ,house of ,representatives a final report on the findings of the study required under subsection 7a74 7d7 ,digital token regulatory coordination 7#a7 ,in general ,in conducting the study required under subsection 7a71 the ,secretary of ,defense and the ,secretary shall consult with the ,commodity ,futures ,trading ,commission regarding the regulatory classification of digital tokens that facilitate access to or operation of decentralized artificial intelligence networks4 7#b7 ,sense of ,congress ,it is the sense of ,congress that tokens described in paragraph 7#a7 are functionally distinct from securities and should be subject to the jurisdiction of the ,commodity ,futures ,trading ,commission4 #i4 ,support for development of secure1 energy-efficient crypto-mining hardware 7a7 ,support from ,national ,institute of ,standards and ,technology 7#a7 ,in general ,the ,director of the ,national ,institute of ,standards and ,technology shall take such actions as the ,director considers appropriate to support the development of secure1 energy-efficient hardware for the mining of cryptocurrency4 7#b7 ,grants authorized ,in carrying out paragraph 7#a71 the ,director may award grants to design rigs for the mining of cryptocurrency that meets ,united ,states cybersecurity standards4 7b7 ,support from ,hollings ,manufacturing ,extension ,partnership 7#a7 ,in general ,the ,director shall1 acting through the ,hollings ,manufacturing ,extension ,partnership1 provide assistance to ,united ,states manufacturers to retool for the production of secure1 energy-efficient hardware for the mining of cryptocurrency4 7#b7 ,technical assistance ,the ,director may1 acting through the ,partnership1 provide technical assistance to ,united ,states persons who manufacturer hardware that can be used for the mining of cryptocurrency4 #aj4 ,promotion of exports to friendly nations of certain mining equipment produced in the ,united ,states ,the ,under ,secretary of ,commerce for ,international ,trade shall develop a program to promote exports to friendly nations of equipment for proof-of-work mining that is produced in the ,united ,states4 #aa4 ,strategic ,bitcoin ,reserve and ,united ,states ,digital ,asset ,stockpile2 yield-generating authority 7a7 ,findings ,congress finds the following3 7#a7 ,bitcoin is a decentralized digital asset that operates through a proof-of-work consensus mechanism and has functioned without central authority for more than #ae years1 demonstrating resilience1 security1 and strategic relevance4 7#b7 ,the secure operation of the ,bitcoin network depends on proof-of-work mining infrastructure1 including infrastructure located within the ,united ,states and friendly nations4 7#c7 ,the ,federal ,government has a national interest in promoting secure1 domestically aligned ,bitcoin mining infrastructure and holding ,bitcoin as a long-term strategic reserve asset of the ,united ,states4 7#d7 ,on ,march #f1 #bjbe1 the ,president issued ,executive ,order #adbcc 7#ij ,fed4 ,reg4 #aaghi2 relating to ,establishment of the ,strategic ,bitcoin ,reserve and ,united ,states ,digital ,asset ,stockpile7 7referred to in this section as the ,executive ,order71 which directs the ,secretary of the ,treasury to establish-- 7,a7 a ,strategic ,bitcoin ,reserve1 capitalized with ,bitcoin owned by the ,united ,states and obtained principally through criminal or civil asset forfeiture proceedings and civil monetary penalties2 and 7,b7 a ,united ,states ,digital ,asset ,stockpile1 capitalized with digital assets other than ,bitcoin obtained on similar terms4 7#e7 ,the ,executive ,order further directed the ,secretary of the ,treasury and the ,secretary of ,commerce to develop budget-neutral strategies for acquiring additional ,bitcoin for the ,strategic ,bitcoin ,reserve without imposing incremental costs on ,united ,states taxpayers4 7#f7 ,it is appropriate1 and in the national interest1 to codify and make permanent the ,strategic ,bitcoin ,reserve and the ,united ,states ,digital ,asset ,stockpile and to facilitate the acquisition of ,bitcoin mined through proof-of-work operations by permitting direct sales to the ,united ,states without recognition of capital gain where the provenance of that ,bitcoin can be objectively demonstrated on-chain4 7b7 ,amendments to title #ca1 ,united ,states ,code 7#a7 ,in general ,subchapter ,,ii of chapter #c of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 #ccd4 ,strategic ,bitcoin ,reserve and ,united ,states ,digital ,asset ,stockpile2 yield-generating authority 7a7 ,definitions ,in this section3 7#a7 ,bitcoin ,the term ,bitcoin means the digital asset-- 7,a7 that-- 7i7 is native to the decentralized peer-to-peer blockchain network described in the white paper entitled ,bitcoin a peer-to-peer electronic cash system published in #bjjh under the pseudonym ,satoshi ,nakamoto2 7ii7 originates from the ,genesis ,block created on ,january #c1 #bjji2 and 7iii7 maintains an unbroken chain of blocks from that ,genesis ,block through the chain recognized by its network of independent nodes as having the greatest cumulative proof of work2 and 7,b7 the native unit of account of which is recognized as ,,btc4 7#b7 ,control ,the term control means the ability to exclusively authorize the spending of ,bitcoin associated with an address or set of addresses through possession of the applicable private keys4 7#c7 ,digital asset ,the term digital asset-- 7,a7 means a natively digital representation of value or rights that is recorded on a cryptographically secured distributed ledger or similar technology2 and 7,b7 does not include a central bank digital currency of the ,united ,states4 7#d7 ,government ,,btc ,the term ,government ,,btc means all ,bitcoin held by the ,department of the ,treasury that-- 7,a7 has been finally forfeited to the ,united ,states or received in satisfaction of a civil monetary penalty2 and 7,b7 is not required to satisfy restitution or other legal obligations4 7#e7 ,mined ,bitcoin ,the term mined ,bitcoin means ,bitcoin that-- 7,a7 was generated as part of a block subsidy or transaction fee included in a coinbase transaction resulting from proof-of-work mining on the ,bitcoin blockchain 7referred to in this section as a reward72 and 7,b7 has not left the possession of the original recipient of such reward since issuance1 as demonstrated through on-chain transaction history4 7#f7 ,on-chain demonstration ,the term on-chain demonstration means cryptographic and transaction data recorded on the ,bitcoin blockchain sufficient to establish1 without reliance on off-chain attestations1 that ,bitcoin is mined ,bitcoin4 7#g7 ,reserve ,the term ,reserve means the ,strategic ,bitcoin ,reserve established under subsection 7b71 including the custodial accounts and related administrative structure associated with that ,strategic ,bitcoin ,reserve4 7#h7 ,stake2 staking ,the terms stake and staking mean committing digital assets to a blockchain network that utilizes a proof-of-stake or similar consensus mechanism for the purpose of earning protocol-level rewards4 7#i7 ,stockpile ,the term ,stockpile means the ,united ,states ,digital ,asset ,stockpile established under subsection 7c71 including the custodial accounts and related administrative structure associated with the ,united ,states ,digital ,asset ,stockpile4 7#aj7 ,stockpile assets ,the term ,stockpile assets means all digital assets other than ,bitcoin owned by the ,department of the ,treasury and obtained through forfeiture or civil monetary penalties4 7b7 ,strategic ,bitcoin ,reserve 7#a7 ,establishment ,there is established in the ,department of the ,treasury the ,strategic ,bitcoin ,reserve4 7#b7 ,composition ,the ,reserve shall consist of all ,government ,,btc and any ,bitcoin subsequently acquired by the ,secretary of the ,treasury pursuant to this section or any other provision of law4 7#c7 ,protected status ,bitcoin held in the ,reserve shall be treated as strategic reserve assets of the ,united ,states and may not be sold or otherwise disposed of except pursuant to a law enacted after the date of enactment of this section that expressly authorizes that disposition4 7c7 ,united ,states ,digital ,asset ,stockpile 7#a7 ,establishment ,there is established in the ,department of the ,treasury the ,united ,states ,digital ,asset ,stockpile4 7#b7 ,composition ,the ,stockpile shall consist exclusively of ,stockpile assets4 7#c7 ,native-form holding ,to the maximum extent practicable1 ,stockpile assets shall be held in the native digital form of those ,stockpile assets4 7d7 ,strategic ,bitcoin ,acquisition ,account 7#a7 ,establishment ,there is established in the ,treasury of the ,united ,states a separate account to be known as the ,strategic ,bitcoin ,acquisition ,account 7referred to in this section as the ,account74 7#b7 ,credits ,notwithstanding section #ccjb7;b7 of this title1 the following shall be credited to the ,account3 7,a7 ,staking rewards or other protocol-level yield earned on ,stockpile assets4 7,b7 ,airdrops or similar protocol-based distributions received by the ,united ,states by virtue of ownership or staking of ,stockpile assets4 7,c7 ,proceeds from the conversion1 sale1 or exchange of the assets described in subparagraphs 7,a7 and 7,b71 and only such assets4 7#c7 ,use ,amounts in the ,account shall be available without further appropriation solely for-- 7,a7 the acquisition of ,bitcoin for deposit into the ,reserve2 and 7,b7 reasonable and necessary expenses incident to custody1 security1 staking1 and asset conversion4 7e7 ,authority ,to generate yield from ,stockpile assets 7#a7 ,authority ,the ,secretary of the ,treasury may stake ,stockpile assets on blockchain networks that utilize proof-of-stake or similar consensus mechanisms solely as a revenue-generating activity to acquire ,bitcoin for the ,reserve4 7#b7 ,construction ,activities under this subsection may not be construed as regulating digital asset markets or as endorsing any consensus mechanism other than proof-of-work as a strategic priority of the ,united ,states4 7#c7 ,limitations ,the ,secretary of the ,treasury may not pledge ,stockpile assets as collateral1 expose the ,united ,states to leverage or margin risk1 or obligate amounts from the general fund of the ,treasury to acquire ,bitcoin under this section4 7f7 ,acquisition of mined ,bitcoin from certified miners and proven owners 7#a7 ,eligibility 7,a7 ,in general ,the ,secretary of the ,treasury shall treat ,bitcoin as mined ,bitcoin eligible for acquisition for deposit into the ,reserve1 if-- 7i7 such ,bitcoin was issued as part of a block subsidy or transaction fee included in a coinbase transaction resulting from proof-of-work mining on the ,bitcoin blockchain2 7ii7 each unspent transaction output representing such ,bitcoin is directly traceable through on-chain transaction history to #a or more coinbase transactions described in clause 7i72 7iii7 no transaction in the ancestry of such ,bitcoin includes any input other than unspent transaction outputs traceable to coinbase transactions attributable to the same seller2 and 7iv7 no portion of such ,bitcoin has been transferred to1 exchanged with1 or combined with ,bitcoin not satisfying the requirements of this subparagraph4 7,b7 ,consolidation ,any transaction consolidating #b or more unspent transaction outputs described in subparagraph 7,a7 shall not disqualify ,bitcoin described in that subparagraph from being treated as described in that subparagraph solely by reason of such consolidation1 provided that-- 7i7 all inputs to that transaction satisfy clauses 7i71 7ii71 and 7iii7 of that subparagraph2 and 7ii7 no output of that transaction is transferred to an address not controlled by the same seller1 other than amounts paid as transaction fees4 7#b7 ,eligible sellers ,bitcoin meeting the requirements of paragraph 7#a7 may be acquired by the ,secretary of the ,treasury directly from-- 7,a7 a certified ,bitcoin miner2 or 7,b7 any owner of ,bitcoin that satisfies the requirements of paragraph 7#a74 7#c7 ,deposit ,bitcoin acquired under this subsection shall be deposited into the ,reserve and treated as ,government ,,btc4 7#d7 ,verification standard 7,a7 ,in general ,verification under this subsection shall be based exclusively on data recorded on the ,bitcoin blockchain4 7,b7 ,prohibitions ,for purposes of subparagraph 7,a71 the ,secretary of the ,treasury may not require off-chain attestations1 third-party certifications1 custodial records1 or discretionary determinations beyond confirmation that the conditions set forth in paragraph 7#a7 have been satisfied4 7g7 ,rule of construction ,nothing in this section may be construed to alter forfeiture law1 impair victim restitution1 create any private right-of-action1 or expand regulatory authority over digital asset markets4 4 7#b7 ,technical and conforming amendment ,the table of sections for subchapter ,,ii of chapter #c of title #ca1 ,united ,states ,code1 is amended by adding at the end the following3 ,sec4 #ccd4 ,strategic ,bitcoin ,reserve and ,united ,states ,digital ,asset ,stockpile2 yield-generating authority4 4