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 The proposed tax, she fears, might drive mining operations abroad and is based on outdated views about energy use.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.
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.
Coinbase has scored a partial victory in its legal battle against the US Securities and Exchange Commission (SEC), potentially gaining access to important documents related to the agency’s classification of tokens as securities.
The price of Bitcoin (BTC) saw a significant drop, falling over 9% and dropping below $53,000 for the first time in over a month late Friday evening.
According to Sergey Bezdelov, director of the Industrial Mining Association, approximately 54,000 Bitcoin (BTC) tokens worth about $3 billion were mined in Russia in 2023.
This week has been bearish for the crypto market and Friday was no exception. Today, Bitcoin and most altcoins experienced significant declines, following the U.S. jobs report.