Lummis Slams Biden's Proposed Bitcoin Mining Tax as Harmful to US Interests

Pro-crypto Senator Cynthia Lummis has blasted the Biden administration's proposed 30% excise tax on Bitcoin mining energy consumption, claiming it would harm America's interests.

Lummis released a report titled 'Powering Down Progress: Why A Bitcoin Mining Tax Hurts America' on July 23, highlighting the benefits of Bitcoin mining to the US energy grid. According to Lummis, up to 52.6% of BTC mining might be emissions-free, as stated by the Bitcoin Energy and Emissions Sustainability Tracker.

The senator argues that the tax would disincentivize miners from seeking sustainable energy sources, citing examples such as methane sequestration from landfills for Bitcoin mining in El Salvador and Finland's use of volcanic energy to mine 474 BTC. Marathon Digital's agreement with Kenya to develop renewable energy is also at risk under the new tax.

Lummis invokes the Laffer Curve to warn of potential consequences, stating that higher taxes will drive miners out of the US, reducing tax revenues. She cites China's 2021 mining ban as a cautionary tale, where Chinese miners controlled a majority of the Bitcoin network's hashrate before the ban.