2024

Biden

Bitcoin

Senator Cynthia Lummis released a report criticizing the Biden administration's proposed 30% tax on Bitcoin mining energy consumption. The report, titled "Powering Down Progress: Why A Bitcoin Mining Tax Hurts America," emphasizes the positive role of Bitcoin mining in the U.S. energy grid. Lummis references data showing that up to 52.6% of Bitcoin mining is emissions-free, highlighting its potential benefits for energy distribution and grid stability. She argues that the proposed tax would deter miners from adopting sustainable energy practices and could drive the industry out of the U.S., reducing expected tax revenues, according to <a href="https://cointelegraph.com/news/senator-cynthia-lummis-report-attacking-biden-mining-tax" rel="noopener noreferrer nofollow">Cointelegraph</a>.
In the report, Lummis notes the collaboration between the Electrical Reliability Council of Texas (ERCOT) and <a href="https://ultramining.com/news/en/russias-bitcoin-gold-rush-mining-machine-influx-outpaces-rest-of-the-world/" rel="noopener noreferrer nofollow">Bitcoin miners</a>, where miners sold back 1500 megawatts of energy during peak demand in 2022. This collaboration continued in 2024 during winter storm Heather. She also points to international examples, such as methane sequestration from trash dumps for Bitcoin mining in El Salvador and the use of volcanic energy for mining.
Lummis criticizes the tax's potential environmental impact, arguing that it would discourage innovative energy recycling methods. She cites a <a href="https://ultramining.com/news/en/marathon-digital-to-boost-energy-efficiency-with-s19-xp-miners/" rel="noopener noreferrer nofollow">Marathon</a> Digital mining facility in Finland that warms a community of 11,000 people with excess heat and a partnership with Kenya’s government to develop renewable energy.
The senator concludes by referencing the Laffer Curve, suggesting that higher taxes could lead to lower tax revenues by driving the industry abroad, similar to the 2021 Chinese mining ban that resulted in a significant exodus of miners.

Lummis Report: Bitcoin Mining Tax Threatens U.S. Energy Grid Stability

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