Congressman Warren Davidson revealed details of the deal to raise the national debt ceiling. The deal between U.S. President Joe Biden and House Speaker Kevin McCarthy canceled the tax on cryptocurrency mining.
Republican Warren Davidson wrote a post on Twitter where he shared a link to a bill to prevent the U.S. economy from defaulting. This legislation would allow the U.S. to raise the national debt limit.
Davidson also wrote on Twitter that the bill does not include Biden's proposed energy tax on cryptominers, which would be 30% of the cost of the energy they use.
"One of our victories is blocking Biden's promoted taxes," Davidson replied to Pierre Rochard, Vice President of Research at bitcoin mining company Riot Platforms. The analyst asked the congressman to confirm information about the elimination of the excise tax on energy for miners.
Earlier, U.S. President Joe Biden announced the introduction of a tax on electricity used by miners to mine digital assets. It was planned to increase the budget of the Treasury Department through these payments.
Biden said that mining and increased electricity consumption are "negative side effects" of the crypto industry.
The price of Bitcoin has risen 65% this year, and U.S. cryptocurrency stocks have since rebounded. But the energy tax was seen as a rock dragging down the crypto sector.
Montana, Texas, and other U.S. states have policies that support cryptomakers and crypto activity in general. Last month, Arkansas joined them by proposing legislation to ensure protection for bitcoin mining companies.
Congress is scheduled to vote on a bill to raise the national debt ceiling on May 31.
Earlier, we reported that, according to John Hussman, Bitcoin is set to hit new lows.