US Senator Defies Possibility of 30% Excise Tax on Bitcoin Mining

The Bitcoin 2023 conference in Miami brought speakers from diverse backgrounds. The thoughts and views from various spectrum added clarity about the burgeoning asset class.

Some of the speakers included United States Senator Cynthia Lummis, who spoke about the proposal to put a 30% tax on crypto mining in the region. She seemed to disagree with the plan of imposing a crypto-mining tax.

Lummis was speaking at the conference with the founder and CEO of the Chamber of Digital Commerce, Perianne Boring. The discussion included multiple subjects from Bitcoin impacting national and energy security, potential crypto regulation, blockchain, etc.

When asked about US President Joe Biden’s proposal of a 30% excise tax on Bitcoin miners, the Senator reportedly said, “That isn’t going to happen.” She responded to the question about the efficacies of the proposal on Bitcoin mining and if the operations compromise national security.

Bitcoin mining is not an area-specific industry or confined to a region, “miners can mine anywhere.” The mining sector is global. Regarding security, Lummis added that it’s more of an energy security issue than national security.

The Wyoming State Senator explained that Bitcoin is poised to use the excess energy. The home state of Lummis has large mining, oil and gas industries. The region is also home to significant energy produced through solar and wind.

Using the excess energy, the cryptocurrency is “cleaning up the environment,” she added. Convincing lawmakers and explaining to them the advantages of digital asset mining was not an easy task.

Lummis was talking about the Biden Administration’s report on the effects of a 30% excise tax on crypto mining. The early May released report noted taxing would be beneficial for the environment and benefit the American communities.

In addition, she stated the infrastructure bill, including the talk about Digital Asset Mining (DAME) tax, considers brokers and miners alike. Following the proposal becoming legislation, crypto miners would be obliged to send their tax data to the Internal Revenue Service (IRS).

According to the Senator, this move would create a “disconnect” between the industry and the lawmakers in the United States. Further, she asserted the challenges when it comes to creating regulations for the crypto industry. She cites a lack of proper awareness or education about the crypto asset.

Lummis referred to the FTX fiasco, which did not involve any Bitcoin (BTC), yet people linked the two. She said people connect the leading cryptocurrencies with other digital assets.

Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing