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 charge 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 submit, saying she had printed an “orange paper” to refute Biden’s “disastrous proposal.” The paper — titled “The Way forward for Bitcoin Mining: Strategic Issues for the US“— offers an in-depth evaluation of the financial, environmental, and regulatory features 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 function in pushing for laws associated to crypto.
Financial impression
Lummis’ paper highlighted the numerous financial advantages of Bitcoin mining, notably in rural and economically distressed areas, the place they will create high-paying jobs and stimulate native economies.
The paper cited profitable mining operations in Texas, North Dakota, and Kentucky, demonstrating how these initiatives have revitalized native communities.
The paper additionally addressed environmental issues, advocating for using 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 fuel from oil fields and hydropower from present dams. Lummis pointed to examples in Iceland and Canada, the place renewable power powers nearly all of mining operations.
Regulatory and nationwide safety concerns
A good portion of the orange paper targeted on the regulatory panorama. Lummis referred to as for clear and supportive rules that encourage innovation whereas making certain client safety.
She proposed a balanced method that fosters the expansion of the Bitcoin mining business with out compromising environmental and monetary stability. The paper steered 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 steered that selling home Bitcoin mining may cut back dependence on overseas international locations and improve America’s place within the international digital economic system.
The paper emphasised the strategic significance of sustaining a strong and safe Bitcoin mining infrastructure inside 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.