What’s the status of Biden’s Bitcoin mining tax?

Bitcoin miners in the United States can now breathe a sigh of relief as a proposed tax on crypto mining did not make it into a bill to raise the U.S. debt ceiling that appears set to pass. The Digital Assets Mining Energy (DAME) excise tax proposal sought to charge crypto miners a tax equal to 10% of the cost of the electricity they used for mining in 2024, before scaling up to 30% in 2026. Critics argued that it had the potential to increase global emissions as a result of miners being forced to go overseas where countries may produce more emissions during energy production. Additionally, Bitcoin miners seek out cheap energy, and as one of the cheapest sources of energy is excess renewable energy, Bitcoin miners can actually incentivize its production by providing utilities with a buyer for energy that would otherwise be wasted.

Although the news broke that the proposed bill did not include any mention of the DAME tax, some people believe that it was only temporarily defeated, alluding to the possibility of it being included in future bills. However, considering the Republican party is generally opposed to increases in taxes and currently controls the House, it seems unlikely such an omnibus bill would be able to make it to the president’s desk.

The CEO of Marathon Digital Holdings, Fred Thiel, suggested that, regardless of whether President Joe Biden’s administration decides to keep pursuing the DAME tax, it will continue its anti-crypto agenda. Many from within the crypto industry and even some U.S. lawmakers agree with this take, arguing that, among other measures, the U.S. government is making a coordinated effort to discourage banks from working with crypto firms.

Thiel stated that due to unclear regulations surrounding mining, his company has made the strategic decision to not focus solely on operating in the United States. Instead, they plan to diversify their operations.

He referenced a statement from his company made on May 9th, announcing the construction of two new mining facilities in Abu Dhabi.

Abu Dhabi has actively sought to attract investment in the cryptocurrency industry through their clear regulatory framework, which has been praised for being pro-market.

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

Policy

Why settle for traditional assets? Hong Kong lawmaker suggests adding Bitcoin to Investment Immigration Program

A Hong Kong legislator has suggested adding Bitcoin trading to the city's licensed exchanges as part of the investmen...

Market

Bitcoin ETF Rejection Didn’t Cause BTC Crash: Expert Analysis and Insights

According to market analysts, Bitcoin's ongoing flush of liquidity is a typical pattern in a bullish market and not n...

Bitcoin

💥 Cipher Mining Boosts Bitcoin Mining Capacity with 16,700 New Miners 💥

Great news! Cipher Mining has recently acquired 16,700 Avalon miners and they will be delivered to their Bear and Chi...

Market

Bitcoin holds at $29.1K, while Worldcoin soars - First Mover Asia

POSITIVE NEWS Despite a slight increase in outflows from BTC investment products, the overall state of mining has sig...

Web3

Hong Kong politician responds to Vitalik's crypto-friendliness comments

Ng enthusiastically responded to Buterin, emphasizing that Hong Kong's policies are remarkably stable and firmly esta...