Proposed 30% Tax On Bitcoin Mining In The US Canceled In Risk Of Default

Key Points:

• Ohio Congressman Warren Davidson confirmed that the proposed 30% tax on US Bitcoin mining had been dropped.
• The proposed cancellation is part of a tentative agreement to prevent the US government from defaulting on its debt.
• The act still needs congressional approval before it goes into effect to avoid a seeming economic disaster for the US government.

Ohio Congressman Warren Davidson has confirmed that the Biden administration’s federal budget proposal to impose a 30% tax on bitcoin mining in the United States has been dropped.

He shared the text of the proposed new debt ceiling deal on Sunday, which includes a complete suspension until January 1, 2025, while implementing a series of spending cuts, including limiting non-defense spending and reducing RSI funding.

In response to Davidson, Pierre Rochard – VP of Research at Bitcoin mining firm Riot Platforms – he was noted that the bill does not have any mention of a proposed Digital Asset Mining Energy (DAME) tax previous government. Davidson confirmed that the proposal is no longer available and that blocking the Democrats’ proposed taxes is among the Republican negotiating victories.

The proposed withdrawal was part of a series of tax-related concessions the administration made in negotiations around the nation’s looming debt ceiling. The act still needs congressional approval before it goes into effect to avoid a seeming economic disaster for the US government.

Previously, a proposal to levy a 30% tax on electricity used by cryptocurrency miners was proposed as part of President Biden’s 2024 fiscal year budget. If the latter is passed, miners could face a 10% annual tax increase for three years on electricity generated starting in 2024.

The proposed tax would make proof-of-work crypto miners a 30% tax on all energy used during mining – significantly increasing the cost of running a mining business in the United States.

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