Biden, McCarthy Debt Ceiling Deal Spares Bitcoin Miners From 30% Tax, Says Congressman

President Joe Biden and House Speaker Kevin McCarthy on Sunday reached an agreement on the U.S. debt ceiling, which included a provision that blocked several proposed taxes by the Biden Administration, including the Digital Asset Mining Energy (DAME) excise tax.

What Happened: The DAME tax aimed to impose a 30% tax on cryptocurrency mining firms, as the administration argued that it would limit the environmental and societal damage caused by crypto mining operations.

Pierre Rochard, the VP of Research at Riot Platforms, took to Twitter to question whether the “Administration’s DAME excise tax proposal is gone?” after Bitcoin mining was not mentioned in the bill text of the “Fiscal Responsibility 5 Act of 2023.” 

Rep. Warren Davidson (R-Ohio) responded to the tweet to confirm that “blocking proposed taxes” was one of the victories in the debt-ceiling agreement.

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Why It Matters: The 99-page bill aims to suspend the country’s debt ceiling until 2025 to prevent a federal default and introduces restrictions on government spending. Although the agreement is subject to further scrutiny and debate in Congress, the DAME tax’s exclusion from the deal signals a win for those in opposition to the Biden Administration’s proposed tax hikes.

Price Action: At the time of writing, Bitcoin was trading at $27,792.23 down 1.13% in the last 24 hours, according to Benzinga Pro.

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