US Debt Ceiling Agreement Drops Proposed 30% Crypto Mining Tax

Joshua Ramos

In what is undoubtedly a victory for the industry, the US debt ceiling agreement has dropped the proposed 30% crypto mining tax. Specifically, Republican congressman Warren Davidson noted the blocked proposal as “one of the victories” of the new agreement.

An agreement on a new US debt ceiling arrived this weekend from President Joe Biden and House Speaker Kevin McCarthy. Moreover, the new agreement will raise the ceiling until January 2025, and will now see the Biden Administration’s DAME tax blocked.

Proposed DAME Tax Blocked in New Debt Deal

The debt ceiling negotiations have been a constant headline for the past few weeks. As the government was running out of money, a catastrophic debt default was on the horizon. Subsequently leading both parties to invoke substantial negotiations to get a deal done.

Now, that deal has included a clear win for the digital asset sector. Specifically, the US debt ceiling agreement has dropped the proposed 30% crypto mining tax. Indeed, the agreement saw the House block the White House’s proposed Digital Asset Mining and Energy Excise Act or DAME.

Source: NBC News

This legislation would impose a 10% tax on the electricity used by digital asset miners in 2024. Subsequently, that figure would grow to 30% by the year 2026. Additionally, the act targeted the energy consumption of miners and their impact on the environment. Moreover, the administration stated that DAME would bring $3.5 billion in revenue for the next decade.

Conversely, Davidson took to Twitter to state that the act was blocked. Specifically, he notes that “one of the victories is blocking proposed taxes.” A clear win for the industry, the debt ceiling agreement has clearly safeguarded miners from unfair legislative action.