Bitcoin (BTC) miners in the US seem to have breathed a sigh of relief after a proposed tax on cryptocurrency mining was not included in the US debt ceiling bill. setting pass.
The Digital Asset Mining Energy (DAME) excise tax proposal seeks to impose a tax on cryptocurrency miners equal to 10% of the cost of electricity used for mining in 2024, followed by an increase to 30% in 2026. rice field.
The tax is highly controversial, with critics saying it could force miners to go abroad and countries could increase their emissions during energy production, reducing global emissions. argued that it could increase.
Furthermore, since Bitcoin miners want cheap energy and one of the cheapest sources of energy is surplus renewable energy, Bitcoin miners are trying to provide utilities with buyers for wasted energy. and can actually encourage its production.
The news comes after Pierre Rochard, vice president of research at bitcoin miner Riot Platforms, noted on May 28 that the proposed bill does not contain any reference to the DAME tax, Warren David said. Rep. Song was reported after replying that it was “one of the victories” of the bill.
Yes, one of the wins is to block the proposed tax.
— Warren Davidson (@WarrenDavidson) May 29, 2023
Dead and buried, or is it due to come back?
While much of the online discussion surrounding the news suggested the proposal was “dead,” others, such as Coinmetrics co-founder Nick Carter, said the proposal was temporarily dead. Emphasizing that it was just rejected, he hinted that it could be included in future bills.
Bitcoin Mining ‘DAME’ Tax Defeat (For Now)
Biden CEA, especially Heather Bushey, is holding this L https://t.co/hJgZ7oUGub
— Nick Carter (@nic__carter) May 29, 2023
carter was suggested Later, in a Twitter thread on May 29th, the administration likely tried to sneak the bill into some kind of omnibus bill, and they would have already done so if they had the political funding to do so. Stated.
But a bill would have to pass both Congress and the House, and given that Republicans generally oppose tax increases and currently control the House, there’s a good chance an omnibus bill like this will reach the president’s desk. seems low.
Senator Cynthia Lumis said during a fireside chat at the Bitcoin 2023 conference in Miami on May 20, while speaking with Digital Commerce Chamber founder and CEO Perriand Boring. guaranteed Viewers argue that the DAME tax “won’t happen.”
Lumis added that it is important for both national and energy security to ensure that bitcoin mining companies stay in the United States, noting that bitcoin mining could reduce gas flare emissions and help stabilize the energy grid. Emphasize how it can help.
Cointelegraph asked the White House if it plans to pursue the DAME tax, but received no response.
Is the damage already done?
In response to Cointelegraph’s question, Bitcoin miner Marathon Digital Holdings CEO Fred Thiel said he would be opposed to whether or not President Joe Biden’s administration will continue to pursue the DAME tax. Suggesting the continuation of the cryptocurrency policy, he said:
“I think it is clear that this administration will continue to broadly oppose the crypto sector. It is not likely that this will be the end of our efforts.”
Many in the cryptocurrency industry, and even some U.S. lawmakers, agree with this view, and the U.S. government, among other measures, has decided to allow banks to become cryptocurrency companies in the name of ensuring their safety. They claim to have a concerted effort (aka Chokepoint 2.0) to stop them from partnering. The financial system will remain stable and secure.
When companies make long-term decisions, they typically try to mitigate risk. Therefore, operating in regions with clear, crypto-friendly policies compared to regions with unclear regulations and more likely to introduce policies that undermine the competitiveness of U.S.-based activities. Given these options, companies will usually choose the former.
In an interview with Cointelegraph, Thiel highlighted how the actions of the U.S. government and regulators are influencing corporate decision-making, stating, “Irrespective of the possibility of the DAME tax being passed, the Marathon We have already started diversifying our business bases.”
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Thiel added that his company made a strategic decision to diversify rather than concentrate in the United States because “the regulations around the mining industry are so vague.”
He pointed to his company’s May 9 announcement that it would build two new mining facilities in Abu Dhabi.
Abu Dhabi, a region that has made concerted efforts to attract crypto-related investments through a clear regulatory regime, has been hailed as pro-market.