US Senator Cynthia Lummis, a Wyoming Republican, has raised concerns regarding the US proposed crypto mining tax on cryptocurrency miners under the Biden administration, alleging preferential treatment by the administration.
In a tweet, Lummis characterized the tax as a “blatant attempt by the administration to pick winners and losers.” Demonstrating her dedication to safeguarding the digital asset industry from potential extinction due to excessive taxation, she emphasized her commitment.
The Proposed Tax: Digital Asset Mining Energy Excise Tax (DAME)
In March, as part of its fiscal year 2024 budget, the Biden Administration introduced the Digital Asset Mining Energy excise tax (DAME).
Under this tax, firms would be obligated to pay a rate equivalent to 30 percent of their electricity costs. Additionally, cryptocurrency miners would be subject to this tax, which will be gradually implemented over three years, commencing next year.
Notably, the rate would escalate by 10 percent each year, ultimately reaching the intended 30 percent mark by the conclusion of 2026.
Senator Lummis and the Opposition
Senator Lummis, known for her support of digital assets and blockchain innovation, has taken a strong stance against the proposed tax.
She first expressed her opposition at the Bitcoin 2023 conference in Miami. Addressing the attendees, Lummis confidently stated, “That isn’t going to happen.”
She further reiterated her support for financial innovation, tweeting, “America must welcome innovation, and digital assets are the future.”
Bill Loading: The Responsible Innovation Act
Senator Lummis, along with Democratic Senator Kirsten Gillibrand of New York, plans to reintroduce the Responsible Innovation Act in the coming month.
This bill, initially introduced last year, aims to regulate cryptocurrency comprehensively. The Senators are considering collaborating with House Financial Services Committee Chair Patrick T. McHenry (R-N.C.) and Maxine Waters (D-Calif.) to divide the bill into separate committees to facilitate its passage.
During the Bitcoin conference, Lummis engaged in a discussion about the legislative process. In her analysis, she anticipated that the House would take the lead by introducing a stablecoin bill prior to the introduction of the Lummis-Gillibrand bill in the Senate.
However, when queried about the timing of her bill’s introduction in relation to the stablecoin bill, Lummis clarified their stance. They made it clear that they were not waiting for the resolution of the stablecoin bill in the House.
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