Senators Elizabeth Warren and Angus King have raised alarms about the potential national security threats posed by cryptocurrency mining operations in Iran.

In a detailed letter to key members of the Biden administration, they expressed concerns over the possibility of the Iranian government using digital assets to circumvent U.S. sanctions and how this could support terrorist activities against U.S. allies and interests.

In their May 1 correspondence, addressed to National Security Advisor Jake Sullivan, Defense Secretary Lloyd Austin, and Treasury Secretary Janet Yellen, Warren and King request information on the ties between Iranian crypto miners and the government and the use of cryptocurrencies in money laundering and funding terrorist operations.

They cite a worrying instance where crypto was purportedly used to fund a drone strike, underscoring the urgency of addressing this issue.

"Iran's use of crypto to evade sanctions poses a direct threat to our national security," the senators emphasized, pointing out the direct implications of unregulated crypto activities on global peace and U.S. security interests.

The letter references a report suggesting that Iranian Bitcoin miners could have generated up to $1 billion in revenue in 2021, indicating the scale and profitability of such operations within the country.

Despite the Iranian government's public crackdown on crypto mining due to electricity concerns, mining was legalized in 2019, which has led to increased scrutiny from international observers.

Senator Warren's vocal opposition to cryptocurrency is well documented, associating it with illicit activities.

As she faces reelection, her stance on crypto remains a significant aspect of her political platform, especially as she potentially goes up against a pro-crypto Republican candidate.

This ongoing debate underscores the broader discussion around cryptocurrency regulation and its national security and international policy implications.