US senator on Bitcoin mining tax bill: ‘not going to happen’

In March you could read in the crypto news that the administration of US President Joe Biden had introduced a new bill that would have negative implications for bitcoin (BTC) and crypto miners. The law wants a 30 percent tax to be collected on the electricity use of bitcoin and crypto miners in the United States. With this, it would like to reduce the impact of mining on the environment. Logically, the proposal has led to the only criticism within the crypto community, but a US senator has also turned his back on the new law and is confident that it will not pass.

Bitcoin miners are reassured

On stage at Bitcoin Miami 2023, Republican Senator Cynthia Lummis said she doesn’t think the proposed 30% tax on crypto mining will ultimately be implemented.

Cynthia Lummis has long been known as a big fan of Bitcoin and the broader crypto industry. She does not hide her support for Bitcoin and is therefore seen by the crypto community as one of the strongest supporters of the industry within the US government.

During a interview Lummis spoke with Perianne Boring, a member of the crypto advocacy group Chamber of Digital Commerce. Companies within this group represent 50% of the hash rate of Bitcoin and are, in Boring’s words, “incredibly concerned” about the new bill.

However, Lummis came up with some positive reassurance for all BTC miners:

”That will not happen. It is absolutely important that the development of this technology, as well as bitcoin mining itself, take place in the United States.”

Lummis himself therefore believes that bitcoin mining makes a net positive contribution to the environment and energy networks, in contrast to the White House. Among other things, she said the following:

“Bitcoin can even be beneficial for stabilizing a network, as attempts can be made to mine BTC when energy consumption is low, and then scale back mining when energy consumption is high.”

BTC mining is becoming more and more sustainable

The fuss within the crypto community regarding the pre-system has to do with the positive development that mining BTC is becoming more sustainable. While the negative effect of mining on the environment is used as a major argument for collecting a 30% tax, most of the energy used for bitcoin mining is currently said to be sustainable.

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