Senator Cynthia Lummis of Wyoming has strongly criticized President Biden’s proposed 30% tax on Bitcoin miners, calling it a “dangerous scheme” and an “attack on innovation.” She believes that such a high tax rate would hinder innovation and drive mining operations overseas, which could have negative implications for both the economy and national security.
In response to Biden’s proposal, Lummis released an “orange paper” titled “The Future of Bitcoin Mining: Strategic Considerations for the US.” This paper provides a detailed analysis of the economic, environmental, and regulatory aspects of Bitcoin mining, highlighting the benefits it can bring to rural and economically distressed areas by creating high-paying jobs and stimulating local economies.
One of the key points raised in Lummis’ paper is the importance of using renewable energy sources in Bitcoin mining to address environmental concerns. By implementing proper regulations and incentives, mining operations can transition to more sustainable energy practices. Examples from countries like Iceland and Canada, where renewable energy powers a majority of mining operations, demonstrate the feasibility of this approach.
Lummis also emphasized the need for clear and supportive regulations that promote innovation while ensuring consumer protection. She proposed tax incentives for companies using renewable energy and stricter emissions standards for mining operations to strike a balance between industry growth and environmental stability.
Furthermore, the paper touched upon national security considerations related to Bitcoin mining. Lummis argued that promoting domestic mining could reduce reliance on foreign countries and strengthen America’s position in the global digital economy. Maintaining a secure mining infrastructure within the country is crucial to safeguard against cyber threats and protect the financial system’s integrity.
Overall, Lummis called for a constructive dialogue among policymakers, industry stakeholders, and the public to shape the future of Bitcoin mining in a sustainable manner. By addressing economic, environmental, regulatory, and national security aspects, she aims to ensure that the industry can thrive and innovate while upholding essential values and principles.