Key Takeaways
- Senator Cynthia Lummis opposes Biden's proposed 30% tax on Bitcoin mining energy consumption.
- Lummis highlights Bitcoin mining's role in stabilizing energy grids and its potential for sustainability.
- Lummis argues that higher taxes will drive the Bitcoin mining industry out of the U.S.
On July 23, Senator Cynthia Lummis released a report attacking the Biden administration’s proposed 30% excise tax on the energy consumed by Bitcoin miners. The report, titled “Powering Down Progress: Why A Bitcoin Mining Tax Hurts America,” highlights the advantages of Bitcoin mining to the U.S. energy grid.
Lummis points to the Bitcoin Energy and Emissions Sustainability Tracker, noting that up to 52.6% of Bitcoin mining might be emissions-free. She emphasizes the role of mining facilities in stabilizing energy grids, particularly through dynamic electrical loads that balance and redistribute energy.
In 2022, Bitcoin miners sold 1500 megawatts back to Texas’s grid during peak demand, a pattern repeated during winter storm Heather in 2024.
The Wyoming senator argues that a 30% excise tax would deter Bitcoin miners from pursuing sustainable energy practices.
She cites examples like methane sequestration from trash dumps and El Salvador’s use of volcanic energy to mine Bitcoin. In Finland’s Satakunta region, excess heat from a mining facility warms a community of 11,000 people, while Kenya’s government collaborates with Marathon Digital to develop its renewable energy sector, which provides 80% of the country’s energy needs.
Lummis concludes by suggesting that increased taxes will push the Bitcoin mining industry out of the U.S., reducing potential tax revenues, as illustrated by China’s 2021 mining ban.
