Sen. Cynthia Lummis (R-Wyo.) recently raised concerns over a tax proposal that is included in the White House’s 2025 budget draft. Lummis expressed her worries about the potential impact of a hefty tax on digital asset mining, which could potentially harm the cryptocurrency industry in America.
In a post on X, Lummis stated, “The White House 2025 budget is incredibly bullish on crypto assets, some might even say they believe it’s going to the moon. But a proposed 30% punitive tax on digital asset mining would destroy any foothold the industry has in America.”
President Joe Biden’s proposed budget for the next fiscal year includes new rules that could have a significant impact on the cryptocurrency industry. The U.S. Treasury Department released a document outlining the administration’s plans to implement an excise tax on cryptocurrency mining companies, which would be set at 30% of the electricity costs incurred by these companies.
Under the proposed regulation, mining companies would be required to report their electricity usage details, including the value of purchased power or leased computing power. This information would serve as the basis for the new tax on digital asset mining.
The budget also includes measures aimed at enforcing wash sale rules in the cryptocurrency domain, designed to prevent investors from claiming tax benefits on securities sold at a loss and quickly repurchased. The proposal aims to close tax loopholes that benefit the rich and large corporations, potentially saving billions of dollars.
At the time of writing, Bitcoin was trading at $72,075, up 0.46% over the last 24 hours. The cryptocurrency market continues to be influenced by regulatory proposals and government policies that impact the industry.
Overall, the concerns raised by Sen. Cynthia Lummis highlight the potential challenges that the cryptocurrency industry may face in the future due to proposed tax regulations. It remains to be seen how these proposals will be implemented and their long-term impact on the market.
