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Crypto Bills Hang by a Thread in US

A few drafted crypto-related bills are still left without any resolution in the US, while one may be eliminated altogether

Crypto Bills Hang by a Thread in US

In a May 28 tweet, Ohio Rep. Warren Davidson said the bill aimed at stopping the US government from defaulting on its debt would block previously “proposed taxes,” that may affect the digital asset space, including a 30% tax on crypto mining suggested as part of President Biden’s FY2024 budget.

The draft of the bill to increase the debt ceiling still needs congressional approval after successful negotiations with President Joe Biden and House Speaker Kevin McCarthy. The new agreement represents a compromise for both sides. Although it prevents the possible default, one of the concessions included is giving up on previously proposed taxes.

Crypto enthusiasts have long criticized the crypto mining tax, which would lead to a 10% tax increase on electricity use by Bitcoin miners each year, starting in 2024. That is why the crypto community is welcoming the debt ceiling bill.

Meanwhile, the decisions on proposals regarding crypto assets have been postponed in the US state of Texas. The 88th legislative session for the government of the state ended on May 29 without any resolution to Senate Bill 1751. This legal initiative aims to change certain sections of Texas’ utilities and tax code to add more restrictions for crypto mining firms.

The controversial bill intends to cap the incentives of crypto mining firms, which are participating in a program that compensates them for load reductions on Texas’ power grid, at 10%. Most likely, the decision on this initiative will be postponed to the next regular session of local lawmakers starting in January 2025.

At the same time, two other crypto-related bills have already been passed by both chambers of the Texas Legislature and await either approval or veto from Gov. Greg Abbott. These are

  • Texas House Bill 1666, which requires crypto exchanges to maintain sufficient reserves and submit reports to the Texas Department of Banking regarding their liabilities,
  • and House Bill 591 allowing Bitcoin miners in Texas to use flare gas emissions to power their operations.

The latter is expected to reduce the carbon impact of Bitcoin mining, often quoted as the main obstacle to crypto adoption, by over 60%.

Nina Bobro

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https://payspacemagazine.com/

Nina is passionate about financial technologies and environmental issues, reporting on the industry news and the most exciting projects that build their offerings around the intersection of fintech and sustainability.