Sen Lummis accuses President Biden of favoritism with proposed crypto mining tax

Source: Sen. Cynthia Lummis’ website

US Senator Cynthia Lummis stated in a tweet on Thursday that the Biden administration is selecting “winners and losers” in a proposal to tax cryptocurrency miners.

Lummis, a Republican from Wyoming, referred to Biden’s proposed 30% tax as a “blatant attempt by the administration to pick winners and losers.” She added that she will not let President Biden tax the digital asset industry out of existence.

Lummis opposed the tax proposal last week at the Bitcoin 2023 conference in Miami. She told the crowd that the tax “isn’t going to happen.”

Lummis also tweeted on Friday about the conference, stating that “America must welcome innovation and digital assets are the future of financial innovation.”

Unpacking the tax

The Biden Administration proposed what is dubbed the Digital Asset Mining Energy excise tax, or DAME, in its budget for fiscal year 2024 in March.

Under that proposal, firms would contend with a tax equal to 30% of the cost of the electricity used.

The tax would be implemented next year and phased in gradually over a period of three years at a rate of 10% a year to then reach the target 30% rate by the end of 2026, according to previous blockchain reporting.

Bill loading

Lummis, along with Democratic Senator Kirsten Gillibrand of New York, has said that the Responsible Innovation Act will be reintroduced in the next month, with some changes including adding in more customer protections.

The bill, which takes a comprehensive approach to regulating crypto, was introduced last year.

The bipartisan pair is working with House Financial Services Committee Chair Patrick T. McHenry, R-N.C., and Maxine Waters, D-Calif., on potentially breaking the bill apart into different committees to get it passed, Lummis said at the conference last week.

“What we’re apt to see is for the House to move a stablecoin bill first, then you’ll probably see the introduction of Lummis Gillibrand in the Senate, which will remain comprehensive,” Lummis said at the bitcoin conference.

Lummis clarified when asked whether she was waiting to introduce her bill until the stablecoin bill is worked through the House.

“We are not,” Lummis said.

We will continue to update Phone&Auto; if you have any questions or suggestions, please contact us!

Share:

Was this article helpful?

93 out of 132 found this helpful

Discover more

BlockChain

Poloniex Hack Reveals the Hilarity and Horror of Crypto Exchanges

Investor Justin Sun of Poloniex has confirmed an exploit and has taken action to reimburse affected users. He has als...

News

In a Plot Twist, Poloniex Bounces Back from $100M Hack with TRX Withdrawals!

Poloniex restores withdrawals following $100M hack, prioritizing TRX deposits and withdrawals. Find out how this impa...

DeFi

🚀 Liquid Restaking Tokens: The Hype, The Risks, and The Future of Ethereum DeFi! 🌟

Discover the latest developments in the world of blockchain technology with our weekly newsletter. This week, join Sa...

BlockChain

Swell Introduces Layer-2 Restaking Rollup in Partnership with AltLayer and EigenLayer

Swell teamed up with Ethereum scaler AltLayer and a16z-backed crypto-staking project EigenLayer to create the rollup,...

BlockChain

EigenLayer Emerges as a DeFi Powerhouse with $4.3 Billion Inflows

The amount of capital invested in restaking protocols has skyrocketed to $10 billion, far surpassing its previous val...

Finance

Justin Sun unstakes 20,000 ETH from Lido Finance. What's happening?

Justin Sun, the co-founder of Tron, has successfully transferred 20,000 Ethereum (ETH) from Lido Finance to Binance u...