On July 23, Cynthia Lummis released a report arguing against the Biden administration’s proposed 30% excise tax on the energy consumed by Bitcoin miners.

Lummis argues that this tax could severely impact the growing Bitcoin mining industry in the U.S., based on what she describes as “unfounded concerns” about environmental pollution and risks to the energy grid.

Lummis’ Critique

“Even if we assume the administration’s goals are genuine, this tax should still be rejected,” Lummis argued. She described the proposed tax as a poorly designed policy that could have serious effects, undermining its stated objectives.

The Biden administration’s dangerous scheme to tax #Bitcoin miners is a blatant attack on innovation, energy abundance and American excellence.

Read my orange paper that refutes this disastrous proposal below ⬇️ ⬇️⬇️ https://t.co/5OCYiXttu6

— Senator Cynthia Lummis (@SenLummis) July 23, 2024

Lummis warned that the proposed tax could drive Bitcoin mining operations overseas to more favorable jurisdictions. She cited the aftermath of China’s ban on Bitcoin mining, where 90% of the industry either closed or moved. She explains that given energy is the primary cost in Bitcoin mining, even small tax increases could be devastating.

“If the United States imposes a blanket tax on Bitcoin mining, a similar exodus could occur here, leading to a loss of economic benefits and job opportunities for American communities.”

The administration claims Bitcoin mining risks local utilities and grid operations but lacks empirical s