Senator Lummis: “Biden’s Bitcoin Mining Tax Bill Won’t Pass”

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Despite recent controversy surrounding the proposed Bitcoin mining tax by the Biden Administration, Bitcoin’s staunchest advocate in the Senate, Cynthia Lummis, believes renewable Bitcoin mining retains promising prospects globally.

Tax Obstacles for Bitcoin Miners

An ardent Bitcoin ally, Republican Senator Cynthia Lummis, has shown strong skepticism towards the Biden Administration’s suggested 30% excise tax on Bitcoin miners. During a recent dialogue at the Bitcoin Miami 2023 event, Senator Lummis expressed firm support for miners and emphasized the significance of the industry’s expansion across the United States, framing it as a national security concern.

In a candid discussion with Perianne Boring, a notable figure in the crypto advocacy sphere from the Chamber of Digital Commerce, Lummis delved into the thorny issue of the proposed excise tax.

Potential Impact on US Bitcoin Miners

Boring outlined the profound anxieties within their membership, which comprises half of Bitcoin’s global hashrate. They fear the inability to sustain operations within the United States if the tax becomes law.

However, Lummis offered words of reassurance to the Bitcoin community. “That isn’t going to happen,” she confidently stated, emphasizing the necessity of Bitcoin mining and technological development within US borders.

The Biden Administration’s Crypto Stance

This proposed excise tax was discreetly included in Biden’s 2024 budget plan. It also introduces new regulations for crypto wash trading and capital gains. 

Earlier this month, the President’s Council of Economic Advisors recommended that Congress sanction the tax. It cited the potential repercussions of causing “local environmental pollution” and “higher energy prices.”

Senator Lummis’ Contrarian View on Environmental Impact

Against these claims, Senator Lummis argues that Bitcoin mining offers more environmental and energy grid benefits than drawbacks. In her home state of Wyoming, she points out that miners have been economically utilized to prevent venting waste methane from oil and gas wells, thus preventing harmful emissions.

“Bitcoin can be advantageous to stabilizing a grid,” Lummis affirmed, suggesting a tactical approach to Bitcoin mining during low energy use periods and curbing mining activity during peak energy consumption times.

Bitcoin miners exhibited this strategy during the Texas grid crisis in July 2022. At the time, miners complied with regulatory requests to halt operations to save energy for homes.

However, this approach is under scrutiny as the Texas House of Representatives considers limiting the number of miners participating in the demand response program. This program offers financial compensation to miners for offline periods.

The Global Bitcoin Mining Landscape

The Bitcoin Mining Council’s survey, as of Q4 2022, revealed a green energy mix of 58.9% in the global Bitcoin mining industry.

Even if federal and state-level efforts are successful in discouraging mining in America, Lummis is undeterred about the worldwide persistence of the industry.

While the future of Bitcoin mining in the United States remains uncertain, Senator Lummis’ unwavering support for the industry offers hope. Especially for those invested in the future of decentralized currency. 

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