Cynthia Lummis Says Biden’s 30% Miner Tax “Isn’t Going to Happen”

Bitcoin-friendly Republican Senator Cynthia Loomis doesn’t think the Biden administration’s proposed 30% excise tax on bitcoin miners is unlikely to pass the House.

On stage at Bitcoin Miami 2023, the politician remained supportive of miners, and believes that the industry’s expansion across the United States is a matter of national security.

Mining: dirty or clean?

during the interviewLummis spoke about excise tax with Perianne Boring, a member of the digital currency advocacy group Chamber of Digital Commerce.

Boring explained that the companies within its members, which account for 50% of the Bitcoin hash rate, were “extremely concerned” that they would not be able to operate in the US if the tax was passed.

Loomis responded by reassuring bitcoins.

“It’s not going to happen,” she said. “It is extremely important that this technology, as well as Bitcoin mining itself, be developed in the United States.”

The Biden tax was quietly unfinished foot In his budget plan for 2024, which also included new rules targeting cryptocurrency trading and capital gains. Earlier this month, the President’s Council of Economic Advisers guidance For Congress to approve the tax, to counter the consequences of causing “domestic environmental pollution” and “rising energy prices”.

Contrary to their claims, Lummis believes that Bitcoin mining is a net boon to the environment and power grids, not a harm. In her home state of Wyoming, she explained, miners are already using it as an economical alternative to venting waste methane from oil and gas wells, which prevents methane from escaping into the atmosphere.

“Bitcoin can actually be useful for stabilizing the network, because there can be efforts to mine bitcoin when (energy) usage is low, and then scale back mining when energy usage is high,” she added.

A miner can mine anywhere

Bitcoin miners engaged in similar stabilization efforts with the Texas network in July 2022 as miners paused operations when required By regulators to conserve energy for homes.

However, the Texas House of Representatives is currently considering a proposal to limit the number of miners that can join the Demand Response Program – which financially compensates miners for time spent offline.

As of the fourth quarter of 2022, the global bitcoin mining industry had a green energy mix of 58.9%, per survey results from the Bitcoin Mining Council.

If federal and state efforts are ultimately successful in discouraging mining in America, Loomis remains unconcerned about the industry’s global survival.

“Miners can mine anywhere,” she said, referring to the inexpensive Norway-based company Hydroelectric mining operations. “There are opportunities all over the world to mine bitcoin in jurisdictions that are friend…and foe.”