US Senator Cynthia Lummis has criticized President Biden’s proposed tax on cryptocurrency miners, calling it a “blatant attempt by the administration to pick winners and losers.” The Wyoming Republican accused the administration of attempting to tax the digital asset industry out of existence. She also spoke out against the proposal at the Bitcoin 2023 conference in Miami, stating that the tax “isn’t going to happen.”
Lummis has since tweeted about the conference, emphasizing the importance of digital assets in the future of financial innovation. The Biden Administration introduced the Digital Asset Mining Energy excise tax (DAME) in its budget for fiscal year 2024 in March. Under the proposal, firms would face a tax equivalent to 30% of the cost of the electricity used. This tax would be gradually phased in over three years, with a 10% increase each year until it reaches the target 30% rate by the end of 2026.
Lummis, along with Democratic Senator Kirsten Gillibrand of New York, plans to reintroduce the Responsible Innovation Act, which takes a comprehensive approach to regulating crypto, with some changes, including the addition of more customer protections. The bill was introduced last year and aims to regulate the crypto industry.
The bipartisan pair is working with House Financial Services Committee Chair Patrick T. McHenry, R-N.C., and Maxine Waters, D-Calif., to potentially break the bill apart into different committees to get it passed. According to Lummis, the House is likely to pass a stablecoin bill before the introduction of the Lummis-Gillibrand bill in the Senate, which will remain comprehensive.
Lummis has clarified that she is not waiting to introduce her bill until the stablecoin bill is worked through the House. She believes that it is important for America to welcome innovation and that digital assets are the future of financial innovation.
The proposed tax on cryptocurrency mining has sparked controversy, with critics arguing that it would stifle innovation and harm the industry. Proponents of the tax argue that it is necessary to address environmental concerns related to cryptocurrency mining. The debate over the proposed tax is ongoing, and it remains to be seen how it will be resolved.
US Senator Cynthia Lummis has spoken out against President Biden’s proposed tax on cryptocurrency miners, calling it an attempt to tax the digital asset industry out of existence. Lummis plans to reintroduce the Responsible Innovation Act, which takes a comprehensive approach to regulating crypto, with some changes, including more customer protections. The proposed tax on cryptocurrency mining has sparked controversy, with critics arguing that it would stifle innovation and harm the industry. Proponents of the tax argue that it is necessary to address environmental concerns related to cryptocurrency mining. The debate over the proposed tax is ongoing, and it remains to be seen how it will be resolved.
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