In a significant development, the controversial Digital Asset Mining Energy (DAME) consumption tax latest The Fiscal Responsibility Bill aims to address the debt ceiling crisis.
The proposed 30% tax on energy costs for crypto miners has sparked widespread criticism from insiders in the crypto mining field and US lawmakers. The news of this inaction was therefore seen as a victory for the wider crypto industry and was widely celebrated on crypto Twitter.
US Congressman Warren Davidson confirmed on Twitter that the DAME tax would not be included in the debt ceiling bill, saying, “One win is to block the proposed tax.”Davidson’s tweet received a positive response response Pierre Rochard, Vice President of Research at Riot Blockchain, commented on the collection of the DAME excise tax. However, it is important to note that Rep. Davidson did not explicitly mention the Bitcoin tax in his response.
The cryptocurrency market reacted favorably to the development, with bitcoin posting a 7% gain before trading on Monday.
digital asset mining energy tax
DAME consumption tax proposal, first introduced Announced on May 2, 2023, with the aim of addressing the energy consumption associated with digital asset mining.according to Ministry of FinanceThis increase in energy consumption has a negative impact on the environment and may increase energy prices for digital asset miners and those sharing the power grid, potentially posing risks to local utilities and communities. .
However, the tax faced strong opposition from cryptocurrency advocates, with several U.S. lawmakers voicing strong opposition, including 2024 presidential candidate Robert Kennedy Jr. and Senator Cynthia Lumis. He promised to stop President Biden from taxing the digital asset industry and killing it.
Is the Bitcoin Mining Tax Gone?
Removing the DAME tax from the debt ceiling bill does not end the debate over energy costs and cryptocurrency mining. It remains unclear whether a similar tax proposal will be reintroduced in future legislation. Moreover, it remains unclear what impact future discussions will have on the U.S. cryptocurrency industry.
Known as the Fiscal Responsibility Act of 2023, the latest version of the debt ceiling bill includes a variety of other provisions. report By NYMag. These include a two-year extension of the debt ceiling, non-mandatory funding targets for the next several years, and specific changes to the SNAP Food Assistance and Temporary Assistance for Needy Families (TANF) programs.
Going forward, it remains to be seen how these new developments will affect the broader cryptocurrency industry. His proposed repeal of the DAME tax is a definite win for crypto miners, but the continued uncertainty surrounding future legislation could pose challenges.
Additionally, while the cryptocurrency community has accepted the tax omission from this current bill, there has been no communication suggesting it has been waived. Instead, much of the buzz stemmed from comments on Twitter by Rochard, a representative of US Bitcoin miners who would be affected by the tax’s passage into law. Rochard’s latest tweet has been viewed more than 120,000 times since its publication on early May 29.
“#Bitcoin mining excise tax is off topic. Take some time on social media and give Warren Davidson, one of the few who understands #Bitcoin, a huge kudos and follow him! “
