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Crypto Mining Tax Scrapped In A Bid To Raise The Debt Ceiling For The US

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Electricity consumption has always raised eyebrows when we talked about cryptocurrency mining. The critics of Bitcoin have used it as a downer in the debate. And for a long time, it seemed that the US government was on the same page with the naysayers. But not anymore. The proposed tax on electricity used by cryptocurrency miners has finally been scrapped. 

It happens in a meeting between house speaker Kevin McCarthy and the US president Joe Biden. While trying to raise the country’s debt ceiling, they jointly agreed on doing away with the unsupportive draft for miners. Warren confirmed this speculation in a reply to the Co-founder of the Satoshi Nakamoto Institute Pierre Rochard. Needless to say, this sent ripples of positivity among the crypto community. And to get a better understanding of the whole situation, it is better that we take a look at the sequence of events.

In March 2023, the government proposed the “Digital Asset Mining Energy Excise Tax”. It was a part of the annual budget from the US treasury department and was exhibited as something the crypto industry should be accountable for.

The news was definitely a bummer among the crypto community. However, at the same time, Bitcoin’s price surged and allayed the fears of token holders across the globe. The price escalation was a resounding 65%. 

Meanwhile, the share prices of Riot Platforms saw a steep rise of 77.8% on March 1. The stock of Digital Holdings also leapfrogged with a 37.2% rise. This sent a clear message that the tax implementation may not be needed.

In quite a defying move, some US states decided to be helping hands to the crypto miners. In April, Montana, Texas, and Arkansas proposed legislation to protect Bitcoin mining firms under the ambit of the law. 

On May 31, lawmakers are slated to vote on the debt ceiling in the country. 

On Sunday, Davidson shared a link to the “Fiscal Responsibility Act of 2023” on Twitter. The draft was created to raise the debt ceiling of the US to prevent any economic setback.

In a following tweet, Davidson said that the bill doesn’t talk about any tax on cryptocurrency mining the Biden administration was advocating.

Pierre Rochard, VP of Research at Riot Platforms, asked for confirmation of the news. In the reply, Davidson said that it’s true and crypto miners have nothing to worry about. 

 

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