The proposed electricity tax for US crypto miners was abandoned in the debt ceiling agreement between President Biden and House Speaker McCarthy, announces Republican Congressman Davidson.
Congressman Davidson shared a draft bill, the “Fiscal Responsibility Act of 2023,” aimed at preventing a national default by raising the US debt ceiling, as he tweeted on Sunday.
Congressman Davidson clarifies that the proposed bill, mentioned in a subsequent tweet, does not incorporate the 30% tax on crypto miners‘ power consumption, which the Biden administration has advocated for.
As part of this year’s budget, the Biden administration introduced the “Digital Asset Mining Energy Excise Tax,” citing industry-related “negative spillovers,” aiming to address the concerns of the U.S. Treasury Department.
Despite initial concerns, listed crypto miners in the U.S. have experienced a recovery in share prices, attributed to the significant rise in Bitcoin’s value by over 65% this year, effectively offsetting the impact of the proposed tax.
Riot Platforms’ shares on Nasdaq surged by 77.8% since March 1, while Marathon Digital Holdings witnessed a 37.2% climb, suggesting potential for further growth now that the tax threat has been eliminated.
Lawmakers in the United States are anticipated to cast their votes on the debt ceiling agreement on May 31, determining the fate of the deal.
The abandonment of the proposed electricity tax on US crypto miners and the subsequent recovery in share prices demonstrate the positive impact of removing the tax threat, potentially fostering growth and stability in the crypto-mining industry.
Also Read: The Mystery of Biden’s $18B Crypto Tax Loophole
