Implications as Debt Limit Deal Omits Biden’s Crypto Tax

30% crypto mining tax has been discarded as part of in-principle debt limit deal reached by Biden and McCarthy.

Joe Biden looking down, his hands together in front of a celebrating miner holding a trophy with bitcoins beaming out.
  • President Joe Biden’s proposed crypto mining tax has been struck out.
  • The move represents a win for the Bitcoin mining industry.
  • The U.S. risked being toppled as the top country for Bitcoin mining.

U.S. President Joe Biden’s administration has recently espoused hard stances on crypto taxation.

Earlier in May, the administration reiterated plans to impose a 30% tax on crypto mining as part of its 2024 fiscal budget proposal, arguing that miners did not cover the economic and environmental costs they impose on others. The proposal unsurprisingly sparked criticism from the Bitcoin community and further fueled narratives of government hostility towards crypto. 

The so-called Digital Asset Mining Energy (DAME) excise tax has now been scrapped following extended negotiations between the Biden administration and House Speaker Kevin McCarthy aimed at raising the U.S. debt limit to prevent an impending default.

A Win for the Bitcoin Mining Industry in the U.S.

In a tweet on Monday, May 29, Representative Warren Davidson confirmed that the 30% crypto mining tax had been discarded as part of the in-principle debt limit deal reached over the weekend by Biden and McCarthy.

“Yes, one of the victories is blocking proposed taxes,” Davidson tweeted in response to inquiries from Riot Platforms’ Pierre Rochard, who noted that the tax was missing from the bill.

The development marks a significant win for Bitcoin miners and the mining industry in the U.S., as expressed by many community members.

Fourth Turning Investments founder Chris Dark asserted that it was good to see discussions around Bitcoin at the highest levels of government while arguing that the tax had no chance of passing Congress in the first place.

The U.S. Bitcoin mining industry has become the largest in the world following the mass exodus of miners from China in 2021, accounting for over 30% of the global mining pool. However, The proposed electricity consumption tax could have forced the industry to look elsewhere.

Aside from the crypto mining tax, the Biden administration also wanted to cover tax loopholes for “wealthy crypto traders.

On the Flipside 

Why This Matters 

By blocking the crypto mining tax, the government has given the Bitcoin mining industry a chance to continue to grow in the U.S.

Read this to learn about Senator Cynthia Lummis’ position on the crypto mining tax:

Sen. Cynthia Lummis Joins Fight Against Biden’s Crypto Tax 

Heard about the Cosmos (ATOM) ecosystem but still trying to figure out what it is? Find out more:

Cosmos (ATOM): What if All Blockchains Could Communicate?

This article is for information purposes only and should not be considered trading or investment advice. Nothing herein shall be construed as financial, legal, or tax advice. Trading forex, cryptocurrencies, and CFDs pose a considerable risk of loss.

Author
Okoya David

David Okoya is a crypto news reporter at DailyCoin based in Nigeria. He covers various topics related to the cryptocurrency industry, including exchanges, regulations, and price movements, and strives to bring fresh angles to breaking news. With experience as a freelance crypto news writer, David upholds the highest journalistic standards, telling complete stories and answering lingering questions whenever possible.