- Bitcoin mining remains a polarizing subject.
- The activity has drawn the ire of the Biden administration.
- Senator Cynthia Lummis has aligned with the Bitcoin community.
Bitcoin mining is a polarizing subject that has often drawn the ire of governments due to its high energy use. In the latest instance, the President Joe Biden-led administration has stressed plans to impose a harsh tax regime on the activity.
The proposal has, however, received pushback from members of the Bitcoin community who have argued that the administration’s priorities are misplaced. Bitcoin community members are notably not the only ones to have criticized the proposal. United States presidential candidate Robert F. Kennedy Jr. bashed the proposal as a “bad idea.” Kennedy has chosen to align himself with the Bitcoin community in public statements.
Senator Cynthia Lummis asserted that the tax would not pass Congress during the Bitcoin Conference. The pro-Bitcoin lawmaker recently reiterated these views, pledging to stand in the way of the Biden administration’s proposal.
Lummis Pledges to Stand in the Way of Biden’s Crypto Tax
Lummis asserted that she would not let Biden kill off the crypto industry with taxes in a tweet on Thursday, May 25, implying that she would not support the proposal in Congress.
"A 30% tax hike on any specific industry is a blatant attempt by the administration to pick winners and losers," Lummis argued.
Crypto taxation has recently become a significant point in U.S. budget talks. Aside from the 30% tax on crypto mining, Biden has also asserted that his administration wants to eliminate tax loopholes for “wealthy crypto traders.”
Biden’s statements have sparked both confusion and anger within the crypto community. Experts speculate that he is referring to the lack of wash trading rules that allow crypto traders to engage in tax-loss harvesting.
On the Flipside
- Russia reportedly plans to create institutions to mine Bitcoin for international settlement.
- U.S. states have signed bills to protect the right to mine cryptocurrencies.
Why This Matters
If the tax proposal passes Congress, it will likely drive Bitcoin miners to other jurisdictions. The crypto industry faces significant uncertainty in the U.S. as regulators have ramped up enforcement actions.
Read this to learn more about the proposed 30% tax on crypto mining:
Bitcoin Community Slams Biden Administration’s Proposed 30% Mining Tax
Gemini has set its sights on Europe in a continued push away from the U.S.:
U.S. Crypto Exodus Continues? Gemini Tips Ireland as European HQ