• President Biden proposed a 30% tax on crypto miners, which Sen. Cynthia Lummis says “Isn’t going to happen.”
• Sen. Lummis and Sen. Gillibrand introduced the Responsible Innovation Act last year and plan to reintroduce it soon with changes including consumer protection measures.
• House Democrats and Republicans seem divided on how to regulate stablecoins, but Rep. McHenry and Rep. Waters may work together on a bill first before introducing the Responsible Innovation Act in the Senate.
President Biden’s Proposed Crypto Mining Tax
US Senator Cynthia Lummis does not support President Biden’s proposed 30 percent tax on cryptocurrency miners, claiming that “it isn’t going to happen” during her speech at Bitcoin 2023 Conference in Miami. The Digital Asset Mining Energy excise tax, or DAME would be implemented next year and phased in gradually over a period of three years at a rate of 10 percent a year before reaching the target 30% rate by the end of 2026.
Responsible Innovation Act
Senators Lummis and Gillibrand introduced the Responsible Innovation Act last year and plan to reintroduce it soon with additions such as consumer protection measures included in it. They are working with House Financial Services Committee Chair Patrick T. McHenry, R-N.C., and Maxine Waters, D-Calif., potentially breaking up this act into different committees for its passage through Congress according to Lummis’ statements at the conference .
Divided Opinion On Stablecoin Regulation
In preparation for Thursday’s hearing regarding stablecoins there were two bills emerged from House Democrats and Republicans who seemed divided on how to approach regulating them . Chair McHenry, R-N.C., as well as former chair Rep Waters may work together on a bill first before introducing the Responsible Innovation Act in Senate according to Lummis’ statements .
Environmental Benefits Of Cryptocurrency Mining
According to Senator Lummis there are environmental benefits related to cryptocurrency mining such as not venting gases into the atmosphere as well as stabilizing grids . This could be beneficial for those who take part in mining activities since they would be able help keep their environment clean while making money off their efforts .
Conclusion
The political debate surrounding cryptocurrency is still ongoing but many believe that if done correctly it can have many advantages for both individuals and society as a whole . Even though President Biden proposed taxing crypto miners , Senator Cynthia Lummis is confident that this proposed tax won’t see daylight anytime soon due her close relationship with other politicians involved in cryptomarket regulations .