Loomis slams Biden’s ‘disastrous proposal’ to tax Bitcoin miners in ‘Orange Papers’
Sen. Cynthia Lummis (R-WY) said the Biden administration’s proposed 30% tax on Bitcoin miners is a “dangerous plan” and an “assault on innovation.”
She argued that such high rates would stifle innovation and undermine both economic and national security interests by moving mining operations overseas.
She made the statement in a social media post on July 23, announcing that she had published an “Orange Paper” refuting Biden’s “disastrous proposal.” Titled “The Future of Bitcoin Mining: Strategic Considerations for the United States,” the paper provides an in-depth analysis of the economic, environmental, and regulatory aspects of Bitcoin mining.
Loomis has been a longtime advocate for cryptocurrencies, and has also raised concerns about the Biden administration’s actions against DeFi protocols and non-custodial wallets. She has played a key role in pushing for legislation related to cryptocurrencies.
Economic impact
Loomis’ paper highlighted the economic benefits of Bitcoin mining, particularly in rural and economically disadvantaged areas, where it could create high-paying jobs and stimulate local economies.
This paper highlights successful mining operations in Texas, North Dakota, and Kentucky, and explains how these projects have revitalized local communities.
The paper also addressed environmental concerns, advocating for the use of renewable energy sources in Bitcoin mining. Loomis argued that with proper regulation and incentives, Bitcoin mining could transition to more sustainable energy practices.
The paper outlines strategies for minimizing the environmental footprint of mining operations, including using flare gas from oil fields and hydroelectric power from existing dams. Loomis points to the examples of Iceland and Canada, where renewable energy powers most mining operations.
Regulatory and National Security Considerations
Much of the Orange paper focused on the regulatory environment. Loomis called for clear, supportive regulations that encourage innovation while ensuring consumer protection.
She proposed a balanced approach that would promote growth in the Bitcoin mining industry without compromising environmental and financial stability. The paper proposed tax incentives for companies using renewable energy and stricter emissions standards for mining operations.
Loomis also discussed the national security implications of Bitcoin mining, suggesting that encouraging domestic Bitcoin mining could reduce dependence on foreign countries and strengthen America’s position in the global digital economy.
The report highlighted the strategic importance of maintaining a robust and secure Bitcoin mining infrastructure within the country to protect against potential cyber threats and ensure the integrity of the financial system.
Loomis called on policymakers, industry stakeholders, and the public to engage in a constructive dialogue about the future of Bitcoin mining to ensure the industry can grow and innovate at a sustainable pace.
