Senator Cynthia Lummis Slams Biden Administration’s ‘Dangerous Scheme’ To Impose 30% Tax On Bitcoin Mining

Senator Cynthia Lummis Slams Biden Administration’s ‘Dangerous Plan’ to Impose 30% Tax on Bitcoin Mining

Sen. Cynthia Lummis (R-Wyo.) has slammed the Joe Biden administration’s proposal to impose a 30% tax on Bitcoin (CRYPTO:BTC) mining activities, calling it a “blatant attack” on innovation and American excellence.

What Happened: In a document called the “orange paper” shared on Tuesday, the senator outlined the various benefits of Bitcoin mining activities and how taxing them could negatively impact energy infrastructure, the environment and the state’s tax revenues.

Biden administration’s dangerous tax plan #Bitcoin The miners are a clear attack on innovation, energy abundance, and American excellence.

Read my orange article refuting this disastrous proposal below ⬇️ ⬇️⬇️ https://t.co/5OCYiXttu6

— Senator Cynthia Lummis (@SenLummis) July 23, 2024

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Lummis notes in the report that mining activities help strengthen US energy grids, contrary to the US administration’s claims.

He said miners can partner with utilities to adjust their energy usage in response to fluctuations in supply and demand, helping to balance the grid. He gave the example of Texas, which is a major hub for Bitcoin mining in the US.

The pro-crypto lawmaker also raised environmental concerns, stating that the 30% tax would discourage the use of unused energy sources such as methane for electricity generation. As a result, methane, a byproduct of natural gas production, would be released into the atmosphere and pose significant risks.

See also: According to Cathie Wood, holding 6 Ethereum (ETH) can make you a millionaire, here are the tips on why that might be true.

Finally, Lummis warned that the country’s tax revenues would be affected, stating that the 30% tax could force miners to migrate to regions with more liberal policies.

Why It Matters: Lummis’ defense comes after the Biden administration proposed a punitive tax on cryptocurrency mining operations because of the “harms they cause to society.”

The Council of Economic Advisers argues that the industry currently enjoys unfair financial advantages because it is not obligated to bear the full costs of pollution, carbon emissions and high energy prices.

The story continues

According to Visual Capitalist’s 2023 report, the US has become the world’s largest Bitcoin mining country, accounting for 37% of the global hash rate.

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This article Senator Cynthia Lummis Slams Biden Administration’s ‘Dangerous Plan’ to Put a 30% Tax on Bitcoin Mining was originally published on Benzinga.com