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Victory for Crypto Miners as Proposed Electricity Tax Ditched in U.S. Debt Ceiling Deal

In a promising turn of events for cryptocurrency miners in the United States, a proposed tax on electricity consumption has been abandoned as part of a new agreement between President Joe Biden and House Speaker Kevin McCarthy. Republican congressman Warren Davidson revealed the development, which forms a key aspect of the “Fiscal Responsibility Act of 2023,” a draft bill to raise the debt ceiling to prevent a national default.

Davidson took to Twitter to announce the omission of the tax on cryptocurrency miners, a significant win for the industry. The Biden administration had campaigned for a 30% levy on the power consumption of crypto miners, but it seems their efforts have been halted for now. Confirmation of the tax’s removal came in response to a tweet by Pierre Rochard, the Vice President of Research at Bitcoin mining firm Riot Platforms.

The Biden administration had introduced the “Digital Asset Mining Energy excise tax” in its annual budget proposal, citing concerns about the perceived negative impacts of the industry. However, despite initial apprehension in the market, listed crypto mining companies in the U.S. have experienced a rebound as the price of Bitcoin soared by over 65% this year, effectively offsetting the tax-related worries.

Since March 1, shares of Riot Platforms on Nasdaq have surged by an impressive 77.8%, while Marathon Digital Holdings recorded a substantial climb of 37.2% during the same period. These figures suggest that removing the tax threat could further bolster their performance.

Furthermore, several U.S. states have embraced cryptocurrency mining by proposing legislation to safeguard the interests of Bitcoin mining companies. Arkansas recently joined Montana and Texas in providing legal protection and support to these businesses, reinforcing the welcoming atmosphere for the industry.

The proposed debt ceiling deal, including the exclusion of the tax on cryptocurrency miners, is set to be voted on by U.S. lawmakers on May 31. This crucial decision will have far-reaching implications for the future of the crypto-mining sector, potentially unleashing a new wave of growth and development.

With the abandonment of the electricity tax and the positive market trends, the future looks bright for U.S. cryptocurrency miners. This victory not only highlights the growing significance of the industry but also serves as a testament to its resilience and potential to thrive in a supportive regulatory environment.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.