US Sen. Cynthia Lummis, a well-known crypto enthusiast and Wyoming Republican, has recently expressed her disapproval of President Biden’s proposed 30% tax on cryptocurrency miners. During her speech at the Bitcoin 2023 Conference in Miami, she highlighted the environmental benefits of cryptocurrency mining, such as eliminating vented gases and stabilizing power grids.
The Digital Asset Mining Energy (DAME) excise tax was proposed in the Biden Administration’s budget for the fiscal year 2024 in March. This controversial tax would require firms to pay a sum equal to 30% of their electricity costs. If implemented, the tax would gradually increase over a period of three years, reaching its target of 30% by the end of 2026.
Senator Lummis also discussed her collaboration with Sen. Kirsten Gillibrand (D-NY) on the Responsible Innovation Act, a comprehensive crypto regulation bill that was introduced last year. The bill will soon be reintroduced with certain modifications, such as the addition of more consumer protection measures. The bipartisan team is aiming to work with House Financial Services Committee Chair Patrick T. McHenry (R-NC) and Maxine Waters (D-CA) to divide the bill into separate parts and pass it through various committees.
The regulation of stablecoins, however, has proven to be a divisive issue among House Democrats and Republicans in the House Financial Services Committee. McHenry and former committee chair Rep. Waters had collaborated on stablecoin legislation previously, but two separate stablecoin bills have since emerged. According to Lummis, the House is likely to begin with a stablecoin bill before focusing on the forthcoming Lummis-Gillibrand bill. As for Lummis, she clarified that she is not waiting for the House to resolve the stablecoin issue before reintroducing her own bill.
The proposed 30% tax on cryptocurrency miners has sparked a lively discussion about innovation, the development of the blockchain space, and the protection of consumers. While the proponents argue that such a tax could increase government revenue and potentially hold miners accountable for the environmental impact of their operations, opponents like Lummis believe that it may hinder the growth and adoption of cryptocurrencies in the United States. Ultimately, the future of this proposal hinges on the effectiveness of the bipartisan collaboration and the balance struck between encouraging innovation and ensuring regulatory compliance.
Source: Cryptonews
