Sen. Cynthia Lummis (R-WY) stated the Biden administration's 30% tax on bitcoin miners is a “harmful scheme” and an “assault on innovation.”
She argued that such a excessive tax charge would stifle innovation and drive mining operations abroad, undermining each financial and nationwide safety pursuits.
She made the announcement in a July 23 social media submit asserting that she had launched an “orange newspaper” to refute Biden's “disastrous proposal.” Titled “The Way forward for Bitcoin Mining: Strategic Issues for the US,” the paper offers an in-depth evaluation of the financial, environmental, and regulatory points of bitcoin mining.
Lummis has been a longtime supporter of cryptocurrencies and has additionally expressed considerations concerning the Biden administration's strikes towards DeFi protocols and non-custodial wallets. She has performed a key position in advancing cryptocurrency laws.
Financial impression
Lummis' paper highlighted the numerous financial advantages of bitcoin mining, significantly in rural and economically distressed areas, the place it will possibly create high-paying jobs and stimulate native economies.
The documentary cited profitable mining operations in Texas, North Dakota and Kentucky, displaying how these tasks revitalized native communities.
The doc additionally addressed environmental points and advocated using renewable power sources in bitcoin mining. Lummis argued that with the best rules and incentives, bitcoin mining can transition to extra sustainable power practices.
The doc outlined methods to reduce the environmental footprint of mining actions, together with using flared gasoline from oil fields and hydropower from present dams. Lummis pointed to examples from Iceland and Canada, the place renewable power powers most mining operations.
Regulatory and nationwide safety points
A major a part of the orange paper targeted on the regulatory atmosphere. Lummis referred to as for clear and supportive rules that can encourage innovation whereas guaranteeing shopper safety.
She proposed a balanced strategy that helps the expansion of the Bitcoin mining business with out compromising environmental and monetary stability. The doc proposed tax incentives for corporations that use renewable power sources and stricter emissions requirements for mining operations.
Lummis additionally mentioned the nationwide safety implications of bitcoin mining and urged that encouraging home bitcoin mining might scale back dependence on international international locations and strengthen America's place within the international digital financial system.
The doc highlighted the strategic significance of sustaining a strong and safe Bitcoin mining infrastructure within the nation to guard in opposition to potential cyber threats and make sure the integrity of the monetary system.
Lummis referred to as on policymakers, business stakeholders and the general public to interact in constructive dialogue about the way forward for bitcoin mining to make sure that the business can proceed to develop and innovate at a sustainable tempo.
