Congressman Warren Davidson, a Republican from Ohio and a strong supporter of cryptocurrencies, confirmed on Twitter that part of the debt limit agreement they reached with President Joe Biden includes removing the proposed 30% DAME tax on electricity for Bitcoin and crypto miners.
Bitcoin and Cryptocurrency Tax Claim Removed by Debt Limit Act
The DAME tax, which stands for the Decentralized Asset Mining Tax, was a controversial measure that the Biden administration proposed in its budget plan earlier this year.
The tax would impose a 30% excise tax on electricity used by crypto miners, who use powerful computers to verify transactions and generate new coins on decentralized networks like Bitcoin and Ethereum.
The tax was aimed at increasing revenues and deterring the environmental impacts of crypto mining, which consumes large amounts of energy and contributes to greenhouse gas emissions. However, many crypto enthusiasts and industry groups argued that the tax was unfair, punitive and would hinder innovation and growth in the emerging industry.
Davidson, who co-chaired Blockchain Caucus in Congress and introduced several bills to promote crypto-friendly regulations, was one of the leading opponents of the DAME tax.
He said he struggled hard to avoid the tax during negotiations on the debt limit agreement, which would suspend the country's borrowing limit until January 2025 and limit government spending for the next two years.
Davidson tweeted on Saturday along with a link to the 99-page law on Saturday: "Debt Limit, Here's the text of the bill. What are your thoughts?"
One of his followers replied: "I reviewed the document, there is no mention of bitcoin mining, does this mean that the administration's DAME excise tax proposal has been cancelled?"
Davidson replied: "Yes, one of the victories is the avoidance of proposed taxes."
Yes, one of the victories is blocking proposed taxes.
— Warren Davidson 🇺🇸 (@WarrenDavidson) May 29, 2023
The debt-limit deal, announced Friday night after weeks of tense talks between Biden and House Speaker Kevin McCarthy, was passed by both houses of Congress before June 5, when Treasury Secretary Janet Yellen warned the United States might fail to meet its debt obligations if lawmakers don't act on time. must also be approved by
*Not investment advice.
