Have you ever wondered what happens when foreign companies buy property near U.S. military bases? Well, the U.S. government has just made a big move to make sure that these deals don’t put national security at risk. This new rule could change how foreign investors operate near some of the country’s most important military sites.

What’s Changing?

The U.S. Department of Treasury has made new changes to a law that keeps a close eye on foreign investments in the U.S. The government already monitors a few military bases, but now they’ve added almost 60 more bases to the list. This means the government will be watching real estate deals that happen near these bases much more closely.

Why does this matter? Well, foreign companies, especially those from countries like China, could now face much more scrutiny if they try to buy property close to a U.S. military base. The government doesn’t want these deals to affect the safety and security of the country.

Why Did This Happen?

The new rule comes after an important event. In 2022, a Chinese-owned cryptocurrency company set up its business just a mile away from F.E. Warren Air Force Base in Wyoming. This base is home to missiles that are part of the U.S. nuclear defense system—super important for national security.

Soon after, the U.S. government stepped in. President Joe Biden ordered the company to shut down immediately. He said there was “credible evidence” that the company could use its operation to harm U.S. national security.

This incident raised alarms, and it pushed the government to create new rules to prevent any future risks like this one. The U.S. didn’t want another foreign business setting up shop near a sensitive military base without anyone noticing.

What Is CFIUS?

The government has a group called the Committee on Foreign Investment in the United States (CFIUS), which looks at foreign investments to make sure they won’t harm national security. CFIUS has been around since the 1970s, but it’s gained more power over the years. It now reviews foreign investments in real estate, especially those near military bases.

The new rule gives CFIUS even more authority. Now, they can keep an eye on nearly 60 military sites across 30 states. They want to make sure that foreign companies can’t take advantage of their location near military bases to gather information or cause harm.

The Incident That Sparked Change

The event that triggered these new rules was a Chinese-owned Bitcoin business near F.E. Warren Air Force Base. Bitcoin mining requires a lot of computing power, and the company’s location next to a U.S. missile base raised red flags. The company didn’t inform CFIUS about its business, but the government found out through a tip from the public.

This led to an emergency order from President Biden to close down the business and force the company to sell off its property. The move was a major step in protecting U.S. military interests from foreign influence.

The Aftermath

After the shutdown, the Chinese company’s property was sold to an American business called CleanSpark. CleanSpark plans to operate the site with around 40 employees. They’ve also bought another property in Wyoming and plan to expand further in the state.

While Wyoming has become a popular place for cryptocurrency companies due to its cold climate, which is ideal for cooling computers, it’s clear now that not just any foreign business can set up near a military base.

What Does This Mean for Foreign Investors?

The new rules are a wake-up call for foreign investors. If you’re thinking about buying real estate near a U.S. military base, you’ll now need to be extra careful. The government will be watching closely, and if they think a deal could pose a threat to national security, they won’t hesitate to step in.

For the U.S., this move is all about keeping the country safe. And for foreign investors, it’s a reminder that national security always comes first.