U.S. Senator Opposes Biden’s Proposed 30% Tax on Bitcoin Mining Electricity

Senator Cynthia Lummis is opposing the Biden administration's proposed 30% tax on the electricity used by Bitcoin miners.

She argues that this tax could harm the U.S. Bitcoin mining industry, which has grown significantly since China banned Bitcoin mining in 2021.

Lummis asserts that the U.S. became a major hub for Bitcoin mining due to its robust energy market and legal protections. The proposed tax, she fears, might drive mining operations abroad and is based on outdated views about energy use.

Her report highlights the economic benefits of Bitcoin mining, such as job creation and support for energy infrastructure, and argues that the tax could damage these advantages.

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Lummis also challenges the administration’s claims that Bitcoin mining disrupts energy grids, citing research showing that mining actually helps stabilize them.

She concludes that failing to support Bitcoin mining could lead to the U.S. losing its leadership position in the industry.

Alexander Stefanov