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US Omits 30% Crypto Tax in New Debt Ceiling Bill; Crypto Twitter Celebrates

source-logo  coinedition.com 29 May 2023 10:00, UTC

In a major victory for crypto miners in the United States, the Biden administration has decided against including the controversial Digital Asset Mining Energy (DAME) excise tax in its latest debt ceiling bill. This comes as good news for crypto mining firms as well as the broader crypto industry operating in the U.S.

U.S. Congressman Warren Davidson took to Twitter earlier today to share the House of Representatives bill text for the debt limit. The 99-page document listed various reforms and exemptions aimed at easing the ongoing debt ceiling crisis in the United States, which included a discretionary spending limit of over $1.6 trillion for fiscal years 2026 through 2029.

Yes, one of the victories is blocking proposed taxes.

— Warren Davidson 🇺🇸 (@WarrenDavidson) May 29, 2023

Pierre Rochard, the VP of Research at American Bitcoin mining giant Riot Blockchain, responded to Congressman Davidson’s tweet by highlighting that there was no mention of bitcoin mining or the proposed DAME excise tax in the bill text. The Congressman confirmed that the controversial DAME excise tax had been blocked by the administration.

The latest development came as good news for stakeholders in the crypto-mining sector. The DAME excise tax, which was unveiled by the Biden Administration on May 2, 2023, proposed a 30% tax on the energy costs incurred by crypto mining firms in the country. The proposal attracted a lot of criticism from the crypto community as well as U.S. lawmakers.

2024 Presidential candidate Robert Kennedy Jr. was one of the first politicians to speak out against the DAME excise tax. Last week, Senator Cynthia Lummis also opposed the Biden administration’s attempt to levy the 30% tax on crypto miners. “I will not let President Biden tax the digital asset industry out of existence,” Senator Lummis stated at the time.