US Senate Opposes Increased Tax on Miners’ Energy Consumption

US Senator Cynthia Lummis has issued a report criticizing President Joe Biden’s administration’s proposal to impose a 30% tax on electricity consumed by miners. This was reported by Cointelegraph.

The report highlights the benefits of critical Bitcoin mining infrastructure for the country’s energy system.

Lummis cited data from the Bitcoin Energy and Emissions Sustainability Tracker, which indicates that up to 52.6% of digital gold mining is conducted using environmentally friendly sources.

The senator noted the growing role of mining installations in ensuring the security of the energy system. Such complexes can be used to balance and redistribute energy in grids during periods of need, the document states.

According to Lummis, in 2022, Bitcoin miners sold 1500 MW during peak demand periods. A similar situation occurred in 2024, when companies associated with the first cryptocurrency’s mining acted as a controlled load resource in Texas during Storm Heather.

The Wyoming senator believes that imposing a 30% tax will remove incentives for miners to seek sustainable energy forms and new processing methods.

Lummis suggested that industry representatives might leave the US, reducing budget revenues if this initiative is implemented. She concluded by referencing the Laffer Curve, which demonstrates the inverse relationship between rates and fiscal collections.

The senator reminded that a similar situation occurred in China, where a mining ban in 2021 effectively destroyed the industry.

In the 2024 budget proposal, Biden suggested changing the taxation of cryptocurrency transactions. According to the head of state, this would increase industry revenues to $24 billion and reduce fictitious transactions.

Earlier, Lummis and New York Democrat Kirsten Gillibrand introduced a bill on payment stablecoins to the Senate.