Disclaimer: Information found on CryptoreNews is those of writers quoted. It does not represent the opinions of CryptoreNews on whether to sell, buy or hold any investments. You are advised to conduct your own research before making any investment decisions. Use provided information at your own risk.
CryptoreNews covers fintech, blockchain and Bitcoin bringing you the latest crypto news and analyses on the future of money.
- The Biden administration previously defended the suggested 30% tax on cryptocurrency mining firms.
- The proposal remains under thorough examination and debate in Congress.
On Sunday, it was revealed that the Digital Asset Mining Energy (DAME) excise tax proposed by the Biden administration was obstructed as part of the agreement reached between President Joe Biden and House Speaker Kevin McCarthy regarding the U.S. debt ceiling.
The Biden administration defended the proposed 30% tax on cryptocurrency mining firms as essential for reducing adverse impacts on the environment and society.
The question of whether “the Administration’s DAME excise tax proposal is eliminated?” was posed by Riot Platforms’ Vice President of Research Pierre Rochard, noting that Bitcoin mining was not referenced in the text of the legislation, termed the “Fiscal Responsibility 5 Act of 2023.”
Related Posts
U.S. Congressman Warren Davidson (R-OH-08) tweeted:
“Yes, one of the victories is blocking proposed taxes.”
Subject to Further Approval
The debt ceiling agreement is an extensive 99-page document designed to extend the nation’s debt limit until 2025, preventing a federal default, while also imposing limits on government expenditure. The proposal remains under thorough examination and debate in Congress.
The idea of implementing a tax on energy usage was initially introduced in March of this year. Despite significant differences in energy consumption, the proposed Digital Asset Mining Energy (DAME) tax would apply to miners of digital assets operating on both Proof-of-Work (PoW) networks like Bitcoin and Proof-of-Stake (PoS) networks like Ethereum.
The suggested tax framework would mandate cryptocurrency miners to disclose their energy consumption, the value of that electricity, and whether it is sourced from renewable energy. Off-grid energy production, including the capture of otherwise wasted natural gas, would also fall under this regulation.
