• Biden’s proposed crypto mining tax has been blocked in the U.S debt ceiling agreement.
• The Digital Asset Mining Energy (DAME) excise tax was proposed to mitigate negative effects on the environment and society.
• The debt ceiling deal aims to postpone the nation’s debt limit until 2025, while also setting constraints on government spending.
Biden’s Crypto Tax Blocked
The Biden administration’s proposed 30% tax on crypto mining companies has been blocked as part of the agreement between President Joe Biden and House Speaker Kevin McCarthy on the U.S. debt ceiling. Warren Davidson, U.S Congressman Warren Davidson (R-OH-08), tweeted: “Yes, one of the victories is blocking proposed taxes.“
Digital Asset Mining Energy Tax
The Digital Asset Mining Energy (DAME) excise tax was proposed earlier in March this year with an aim to mitigate negative effects on the environment and society from crypto mining activities. This would require cryptocurrency miners to report their power use, worth of that electricity, and whether or not it comes from renewable sources. Off-grid power production like recovery of otherwise lost natural gas would be subject to this rule as well.
Debt Ceiling Agreement
The comprehensive 99-page law will postpone the nation’s debt limit until 2025 and set constraints on government spending as well as block certain taxes such as DAME excise tax. Whether “the Administration’s DAME excise tax proposal is gone?” was a query raised by Riot Platforms’ Vice President of Research Pierre Rochard because Bitcoin mining wasn’t mentioned in text of measure which is called Fiscal Responsibility 5 Act of 2023 yet it has been blocked from it now too.
This latest move by Biden administration will have an impact on crypto miners who were looking forward for some kind of regulation in terms taxation and reporting power use etc when using digital assets like Bitcoin or Ethereum for mining purposes but they will have wait longer for that now till next fiscal year at least when new budget comes into effect if any changes are made towards regulations then only we can see some kind of taxation coming into picture about digital asset mining energy .
At present there is no planned regulation regarding taxing digital asset miners but government might come up with something related soon depending upon future discussions between Congress members so we have to wait for official news before making any assumptions regarding same .