American Senator Cynthia Lummis, known for her cryptocurrency-friendly attitude, believes that the Biden administration’s proposed 30% tax on miners’ income is unlikely to pass.
During the Bitcoin Miami 2023 conference, Cinthia Lummis emphasized her support for miners and considered the mining industry an important industry for national security.
The senator noted that U.S. mining companies generate about half of the first cryptocurrency’s network hash rate and the management of such companies is “extremely concerned” about the possibility of a “draconian” tax.
“It’s not going to happen.. It’s critical that this technology, as well as the mining industry, is developed in the U.S.,” Lummis said.
The senator also underscored that she sees no harm to the environment or energy systems in the mining industry.
For example, in her home state of Wyoming, miners use associated gas from oil and gas wells to mine bitcoin. In this way they prevent methane emissions into the atmosphere.
“In addition, the mining industry is useful for stabilizing the power grid.
They can mine coins when overall energy consumption is low, and they can shut down equipment when there are peaks in consumption,” the senator said.
Earlier, Fred Thiel, CEO of mining firm Marathon Digital, said a 30% tax wouldn’t work.
According to him, if such a tax is imposed in the U.S., the mining firms will simply move the equipment to other jurisdictions.