US Senate Passes GAIN Act, Threatening Crypto Mining Hardware Access and Raising Costs

Executive Summary

The US Senate has passed the Guaranteeing Access and Innovation for National Artificial Intelligence Act of 2026 (GAIN Act) as an amendment to the National Defense Authorization Act (NDAA). This legislation mandates that US manufacturers of high-performance computer chips prioritize domestic orders before exporting, a measure poised to significantly impact the global crypto mining industry by restricting hardware availability and escalating operational costs. Market sentiment for the crypto mining sector is currently characterized as uncertain to bearish, reflecting potential headwinds from increased hardware acquisition expenses and supply chain disruptions.

The Event in Detail

The GAIN Act was approved by senators as an amendment to the annual NDAA. Its core provision compels US chipmakers, particularly those producing advanced AI and high-performance computing chips, to fulfill domestic demand prior to any international sales. Furthermore, the act grants Congress the authority to deny export licenses for the most sophisticated AI processors and necessitates export licenses for all products containing an “advanced integrated circuit.” This legislative push comes amidst reports of significant chip backlogs, with policy advocacy group Americans for Responsible Innovation noting that Nvidia's Blackwell line was booked approximately 12 months in advance in late 2024. While passed by the Senate, the GAIN Act must still secure approval from the House of Representatives and the President to become law, indicating its final provisions are subject to ongoing Congressional negotiation.

Market Implications

The potential enactment of the GAIN Act carries substantial implications for the crypto mining sector, specifically impacting hardware accessibility and operational expenses. The mandate for domestic prioritization of advanced chips is expected to make critical mining hardware harder to acquire globally, potentially driving up prices and reducing the competitive edge for international operations. This new layer of export restriction exacerbates an already challenging environment shaped by existing trade tariffs. US-based miners have been contending with steep tariffs on imported ASIC machines, with rates as high as 57.6% for Chinese-made rigs and 21.6% for imports from Indonesia, Malaysia, and Thailand. These tariffs have already led to increased operational costs, a surge in the price of second-hand ASIC machines, and supply chain disruptions. The combined effect of the GAIN Act and existing tariffs could lead to significantly higher expenses for acquiring new mining equipment, diminishing profit margins for US-based miners and potentially shifting the global hashrate distribution.

Business Strategy & Market Positioning

US crypto mining companies are already navigating heightened regulatory scrutiny regarding imported hardware. CleanSpark is currently disputing a potential $185 million tariff claim from US Customs and Border Protection (CBP) concerning alleged Chinese-origin Bitmain Antminers imported in 2024. This dispute, if CBP prevails, could represent nearly 70% of CleanSpark's record Q3 2025 net income. Similarly, IREN disclosed a $100 million CBP dispute over comparable allegations for imports between April 2024 and February 2025. These cases highlight an intensifying US customs enforcement campaign targeting the origin declarations of cryptocurrency mining equipment. In response, major industry players are advocating for policy reforms, including lobbying for tariff exemptions on mining hardware and encouraging the development of a local supply chain for ASIC machines, to maintain the US as a competitive Bitcoin mining hub. This mirrors a broader strategic effort to secure a domestic advantage in critical technological components.

Broader Context

The passage of the GAIN Act by the Senate, as an amendment to the NDAA, underscores the increasing trend of attaching various legislative initiatives to this "must-pass" defense funding bill. The NDAA process itself is a complex and lengthy one, with numerous amendments often proposed. The GAIN Act's provisions, coupled with ongoing trade tensions and existing tariffs previously announced by entities such as the US government under former President Donald Trump, contribute to an environment of significant economic pain and liability for US-based crypto mining operations. The long-term implications, if the GAIN Act becomes law in its current form, could include a deterrence of investment in mining hardware, increased operational costs, a reduction in the global competitiveness of US mining operations, a potential shift in global hashrate distribution, and further disruption to the supply chain for critical mining components. The crypto mining industry, global in scope, will continue to face challenges from these evolving legislative and trade landscapes.