2024

United

Biden

Bitcoin

Senator Cynthia Lummis, also known as “Crypto Queen” of Congress, has recently released a report that argues against Biden’s mining tax. On July 23, she shared a <a href="https://www.lummis.senate.gov/wp-content/uploads/Bitcoin-Mining-Paper-FINAL.pdf" rel="noopener noreferrer nofollow">report</a>, noting the environmental and economic benefits of the bitcoin mining infrastructure to the United States’ energy grid.&nbsp;
Lummis also criticized the government’s 30% excise tax on the energy consumed by the miners. She <a href="https://x.com/SenLummis/status/1815792680242184532" rel="noopener noreferrer nofollow">states</a>:
“The Biden administration’s dangerous scheme to tax bitcoin miners is a blatant attack on innovation, energy abundance and American excellence.&nbsp; ”
The pro-crypto senator uses data from the Bitcoin Energy and Emissions Sustainability Tracker to state that bitcoin mining is more environmentally friendly than commonly perceived. Notably, the tracker <a href="https://batcoinz.com/beest/" rel="noopener noreferrer nofollow">reveals</a> that up to 52.6% of Bitcoin mining operations could be emissions-free.
<h2 id="span-style-font-weight-400-bitcoin-mining-beneficial-for-u-s-span">Bitcoin Mining Beneficial for U.S.</h2>
Lummis highlighted the role of Bitcoin mining facilities in enhancing the stability and efficiency of the energy grid. These facilities, which represent large, flexible electrical loads, can be instrumental in balancing and redistributing energy during peak demand periods.
She points to the ongoing collaboration between the Electrical Reliability Council of <a href="https://thecoinrise.com/hut-8-starts-construction-on-63mw-bitcoin-mining-site-in-texas/" rel="noopener noreferrer nofollow">Texas (ERCOT) and Bitcoin miners</a> as a prime example. In 2022, Bitcoin miners were able to sell 1,500 megawatts of energy back to the grid during times of peak demand. A similar pattern emerged in 2024 during winter storm Heather.&nbsp;
<h2 id="span-style-font-weight-400-a-discouraging-tax-policy-span">A Discouraging Tax Policy</h2>
One of the key arguments in Lummis’ report is that the proposed 30% tax would harm the environment by discouraging Bitcoin miners from pursuing sustainable energy sources and energy recycling techniques.&nbsp;
Lummis references the Laffer Curve, an economic theory suggesting that higher tax rates can lead to lower tax revenues by driving industries out of the country. She argues that imposing a 30% excise tax on Bitcoin miners would likely result in the industry relocating to more tax-friendly jurisdictions, ultimately reducing the tax revenues the government aims to collect. This has already happened in China, where a 2021 mining ban forced the once-dominant mining industry to move elsewhere.
<h3 id="span-style-font-weight-400-lummis-highlights-sustainable-practices-span">Lummis Highlights Sustainable Practices</h3>
She highlights examples of sustainable practices in the bitcoin mining sector, including <a href="https://thecoinrise.com/el-salvador-celebrates-december-21-with-21-btc-acquisitions/" rel="noopener noreferrer nofollow">crypto-friendly El Salvador’s</a> use of volcanic energy to mine 474 Bitcoin and the use of sequestered methane from trash dumps for Bitcoin mining and. Moreover, in Finland’s Satakunta region, excess heat from a Marathon Digital mining facility is used to warm an entire community of 11,000 people.
The report also touches on international efforts to develop renewable energy sectors through Bitcoin mining. Earlier this year, Marathon Digital signed an agreement with Kenya’s government to enhance the country’s renewable energy sector, which already provides up to 80% of Kenya’s <a href="https://www.trade.gov/country-commercial-guides/kenya-energy-electrical-power-systems" rel="noopener noreferrer nofollow">energy needs</a>.
The post <a href="https://thecoinrise.com/senator-lummis-advocates-against-proposed-30-tax-on-bitcoin-miners/" rel="noopener noreferrer nofollow">Senator Lummis Advocates Against Proposed 30% Tax on Bitcoin Miners</a> appeared first on <a href="https://thecoinrise.com" rel="noopener noreferrer nofollow">Latest News and Insights on Blockchain, Cryptocurrency, and Investing</a>.

Senator Lummis Advocates Against Proposed 30% Tax on Bitcoin Miners

Table of Contents

TheCoinrise Media

Other articles published on Jul 24, 2024

Ethereum (ETH) produced 60K extra tokens in a month on low but persistent inflation

Bitcoin rewards app Fold to go public via SPAC merger

Ferrari Revs Up Crypto Payments In Europe, Expanding On US Success

Economy: The EU wants to use frozen Russian funds to support Ukraine

$17 JASMY Price Target Gains Momentum as JasmyCoin Reveals Bullish Project Milestones in Japan an...

Bitcoin Price Dips: Is This the Start of a Fresh Downside?

Join our free newsletter for daily crypto updates!