Debt-limit deal excludes 30% tax on cryptocurrency mining

The debt-ceiling project to raise the debt limit does not contain mention of the excise tax Digital Asset Mining Energy (DAME).

In early May CEA proposed to include in the federal budget a 30% tax on electricity used in cryptocurrency mining. The initiative was positioned as a measure to minimise the impact on climate change.

Experts proposed a phased introduction of the tax over three years: 10% next year, then 20% and 30%. It was projected that DAME would raise $3.5 billion over ten years.

A Republican representing Ohio in the U.S. House, Warren Davidson, called the rejection of the tax a victory.

Yes, one of the victories is blocking proposed taxes.

— Warren Davidson ?? (@WarrenDavidson) May 29, 2023

Earlier in March, CEA presented a report, in which it argued that digital assets do not meet the stated use cases. They also highlighted the risks that digital assets pose for investors and financial stability more broadly.