Negotiations on the new debt deal have crushed the Biden administration’s plan to gradually introduce a 30% tax on the electricity used in Bitcoin (BTC) and crypto mining.
Congressman Warren Davidson (R-Ohio), an outspoken digital advocate, say on Twitter that “one of the victories” of the negotiation process was the blocking of proposed taxes, including the crypto mining proposal.
The Biden administration’s mining tax was included in a $6.8 trillion budget proposal released in early March.
After months of uncertainty, President Joe Biden announced over the weekend he reached an agreement with Speaker of the House Kevin McCarthy (R-California) on a budget.
President Biden insisted both chambers of Congress to approve the bipartisan deal before June 5, the day Treasury Secretary Janet Yellen said the government would run out of money.
On Tuesday, the House Rules Committee approved the proposal by a vote of 7 to 6. The full House of Representatives plans to vote on the bill Wednesday, after which it will go to the Senate, the Associated Press reports.
Yellen previously warned that the US could face “economic disaster” if the government fails to reach a deal before the country defaults.
At the time of writing, the US has $31.8 trillion in debt.
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