• President Biden proposed a 30% tax on cryptocurrency miners, which Sen. Cynthia Lummis (R-WY) believes won’t happen.
• Lummis and Sen. Kirsten Gillibrand (D-NY) are reintroducing a comprehensive bill called the Responsible Innovation Act to regulate crypto.
• House Democrats and Republicans in the House Financial Services Committee are split on how to regulate stablecoins, but Reps. McHenry and Waters may introduce a separate bill before the introduction of Lummis Gillibrand’s bill.
President Biden’s Tax
President Biden proposed what is dubbed the Digital Asset Mining Energy excise tax, or DAME, in its budget for fiscal year 2024 in March. Under that proposal, firms would contend with a tax equal to 30 percent of the cost of the electricity used and it would be phased in gradually over a period of three years at a rate of 10 percent per year to reach the target 30% rate by 2026. US Sen. Cynthia Lummis (R-WY), however, does not believe this is going to happen due to environmental benefits such as stabilizing grids and not venting gases into the atmosphere that come from mining cryptocurrencies.
Responsible Innovation Act
Senators Cynthia Lummis (R-WY) and Kirsten Gillibrand (D-NY) introduced The Responsible Innovation Act last year as an attempt to regulate crypto more comprehensively than the proposed tax by President Biden. They plan on introducing it again soon with some changes such as adding consumer protections. They are also working with House Financial Services Committee Chair Patrick T McHenry (R-NC) and Maxine Waters (D-CA) on potentially breaking up their bill into different committees so it can pass easier.
House Divided On Stablecoin Regulation
The House Financial Services Committee seemed divided during their Thursday hearing on how best to regulate stablecoins; two bills have emerged but Rep McHenry and Rep Waters may introduce another one together before Senators Lummis’ and Gillibrand’s comprehensive bill gets introduced again soon with added consumer protections included this time around too!
Senators Cynthia Lummis (R – WY )and Kirsten Gillibrand (D – NY ) have joined forces in order to tackle crypto regulation through their comprehensive bill: The Responsible Innovation Act which they plan on introducing again soon with some additional changes such as added consumer protection measures . In addition, Representatives Patrick T McHenry( R – NC )and Maxine Waters( D – CA )are also collaborating together in order work towards passing legislation related to regulating stablecoins more effectively through possibly breaking up Senator’s Lummis’ & Girllibrands’bill into smaller chunks so it can pass easier .
Overall , President Biden’s 30 percent tax on cryptocurrency miners is very unlikely according to Senator Cynthia Lummis( R – WY ). Additionally , bipartisan efforts between Senators & Representatives have been made in order to create legislation that better regulates crypto , specifically stablecoins . These efforts include reintroducing The Responsible Innovation Act which includes additional consumer protection measures & potentially splitting up said act into smaller pieces for easier passage through Congress .