• As a result of China’s ban, Foundry USA has grown to become the second-largest Bitcoin mining pool

  • Foundry USA, a New York-based crypto-mining service provider, has taken the lead to become the world’s second-largest Bitcoin (BTC) mining pool, with a 15.42 percent share of the network.

    According to BTC.com data, Digital Currency Group-owned Foundry USA trails pool leader AntPool by a hash rate of just 4,000 PH/s, contributing to a 17.76 percent network share at the time of writing.

    The increase in American participation can be attributed to China’s recent blanket ban on crypto trading and mining activities. The ban compelled a large number of local Bitcoin miners to relocate to crypto-friendly jurisdictions such as the United States, Russia, and Kazakhstan.

    Foundry USA charges the highest average transaction fees of 0.09418116 BTC (nearly $5,500) per block of the top five mining pools in terms of hash rate distribution. In terms of crypto ATM distribution, American businesses have also picked up the slack left by China.

    According to Coin ATM Radar data, Georgia-based Bitcoin Depot has surpassed its Chinese competitors to become the world’s largest crypto ATM operator. Surprisingly, the majority of crypto ATM operators are run by American companies, a trend that has become more prominent since China’s proactive ban on crypto activities.

    Despite the clear intention to pursue an in-house central bank digital currency (CBDC), the Chinese Communist Party sought public opinion on the Bitcoin mining ban on Oct. 21, sparking discussions about the government’s negative stance on Bitcoin and cryptocurrency mining activities.

    Statista data, on the other hand, confirms that China’s contribution to the Bitcoin mining hash rate has been steadily declining since September 2019. Two decades ago, China accounted for more than 75 percent of Bitcoin’s mining hash rate, which had dropped to 46 percent by April 2021 prior to the cryptocurrency ban.

    As the United States moves closer to mainstream Bitcoin adoption, regulators are seeking clarification on the new reporting requirements proposed by the Biden administration.

    Members of the Republic and Democratic parties have made separate requests to amend the crypto tax reporting reforms, as well as to redefine the term “broker” in crypto transactions.

    The bipartisan infrastructure bill requires the general public to report digital asset transactions worth more than $10,000 to the Internal Revenue Service beginning in 2024. Brokers are currently defined in the bill as miners and validators, hardware and software developers, and protocol developers.

    What's your reaction?