US Debt Ceiling Deal Blocks Biden's Bitcoin Mining Tax: Congressman
On Sunday, President Joe Biden and House Speaker Kevin McCarthy reached an agreement on the U.S. debt ceiling, which includes a section that appears to have blocked some taxes proposed by the Biden administration, including the Digital Asset Mining Energy (DAME) excise tax. This tax would have imposed a 30% tax on cryptocurrency mining firms, with the goal of limiting the environmental and societal damage caused by crypto mining operations.
Pierre Rochard, VP of Research at Riot Platforms, questioned whether this meant "the Administration's DAME excise tax proposal is gone?" given that Bitcoin mining wasn't mentioned in the text of the bill, dubbed the “Fiscal Responsibility 5 Act of 2023.” U.S. Congressman Warren Davidson (R-OH-08) responded in a tweet that, "Yes, one of the victories is blocking proposed taxes."
The bill is aimed at suspending the nation's debt limit until 2025, thereby preventing a federal default, while simultaneously imposing restrictions on government spending. However, it still faces scrutiny and debates in Congress.
This news is significant for the crypto industry as the proposed tax would have added a substantial cost burden to mining firms and could have stunted the growth of the industry. The fact that the tax was not included in the debt ceiling agreement bodes well for the future of crypto mining in the United States.
It's important to note that while this deal blocks the proposed tax from going into effect, it doesn't necessarily mean that the tax won't be proposed again in the future. Additionally, the debt ceiling agreement still needs to pass through Congress before becoming law, so there's no guarantee that the tax won't be added back into the bill during the legislative process.
Despite these potential roadblocks, the fact that the Biden administration's proposed tax has been blocked is good news for the crypto industry. It shows that lawmakers are taking note of the importance of the industry and its potential to drive economic growth in the United States.