Bitcoin (BTC) miners in the United States can breathe a sigh of relief after 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.
The tax was highly controversial, with critics arguing 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.
The news broke after Bitcoin miner Riot Platforms vice president of research Pierre Rochard noted on May 28 that the proposed bill did not include any mention of the DAME tax, which Representative Warren Davidson replied was “one of the victories” of the bill.
Yes, one of the victories is blocking proposed taxes.
— Warren Davidson (@WarrenDavidson) May 29, 2023
Dead and buried or set to return?
While much of the online discussion around the news suggested the proposal…
