Proposed 30% Crypto Mining Tax Dropped in Debt Ceiling Deal

In a recent breakthrough, President Joe Biden and House Representative Kevin McCarthy have reportedly come to an agreement in principle to raise the debt ceiling of the US government. This crucial negotiation, which has spanned several months, has led to a tentative deal yet to be officially ratified.

One of the prominent proposals was the Biden administration’s proposed Digital Asset Mining Energy (DAME) excise tax. This tax aimed to levy a 30% charge on the cost of electricity used by crypto mining firms, according to the Coingape. The introduction of this tax was an effort to address the economic and environmental costs associated with the current crypto mining practices.

However, in the new debt ceiling deal, it has been confirmed by US Congressman Warren Davidson that this proposed tax has been successfully blocked. As a result, if the current budget deal passes without changes, the crypto mining industry will not face this significant increase in operating costs.

Despite the progress, there is some dissent. Several congressional Republicans have voiced their dissatisfaction with the tentative debt ceiling deal, threatening to vote against it. These objections come amidst looming fears of potential economic collapse, both domestically and internationally, should the debt ceiling not be raised.

The crypto market, however, has reacted positively to the news. Bitcoin recorded a surge of over 3% in the wake of the announcement, with Ethereum and other leading cryptocurrencies also witnessing a significant uptick over the weekend. As the final vote on the debt ceiling deal approaches this Wednesday, all eyes will be on the Congress.