Senator Cynthia Lummis (R-WY) mentioned the Biden administration’s to impose a 30% tax on Bitcoin miners is a “harmful scheme” and an “assault on innovation.”
She argued that such a excessive tax fee would stifle innovation and push mining operations abroad, undermining each financial and nationwide safety pursuits.
She made the assertion in a July 23 social media put up, saying she had printed an “orange paper” to refute Biden’s “disastrous proposal.” The paper — titled “The Way forward for Bitcoin Mining: Strategic Concerns for the US“— gives an in-depth evaluation of the financial, environmental, and regulatory points of Bitcoin mining.
Lummis has been a long-standing advocate of crypto and has additionally raised issues over the Biden administration’s actions towards DeFi protocols and non-custodial wallets. She has performed a key position in pushing for laws associated to crypto.
Financial affect
Lummis’ paper highlighted the numerous financial advantages of Bitcoin mining, significantly in rural and economically distressed areas, the place they’ll create high-paying jobs and stimulate native economies.
The paper cited profitable mining operations in Texas, North Dakota, and Kentucky, demonstrating how these tasks have revitalized native communities.
The paper additionally addressed environmental issues, advocating for the usage of renewable power sources in Bitcoin mining. Lummis argued that with correct rules and incentives, Bitcoin mining can transition to extra sustainable power practices.
The paper outlined methods to attenuate the environmental footprint of mining actions, together with utilizing flared gasoline from oil fields and hydropower from current dams. Lummis pointed to examples in Iceland and Canada, the place renewable power powers the vast majority of mining operations.
Regulatory and nationwide safety concerns
A good portion of the orange paper centered on the regulatory panorama. Lummis known as for clear and supportive rules that encourage innovation whereas making certain shopper safety.
She proposed a balanced strategy that fosters the expansion of the Bitcoin mining business with out compromising environmental and monetary stability. The paper advised tax incentives for firms that use renewable power and stricter emissions requirements for mining operations.
Lummis additionally mentioned the nationwide safety implications of Bitcoin mining and advised that selling home Bitcoin mining might cut back dependence on international nations and improve America’s place within the world digital economic system.
The paper emphasised the strategic significance of sustaining a sturdy and safe Bitcoin mining infrastructure throughout the nation to guard in opposition to potential cyber threats and make sure the integrity of the monetary system.
Lummis urged policymakers, business stakeholders, and the general public to interact in a constructive dialogue about the way forward for Bitcoin mining to make sure the business can proceed to develop and innovate at a sustainable tempo.