The debt ceiling agreement, which the US has agreed on recently, was welcomed by Bitcoin miners.
The US debt ceiling agreement agreed to withdraw the 30 percent tax proposed by President Joe Biden on electricity used by companies.
US Debt Ceiling Agreement Gives Market Confidence
The U.S. debt ceiling agreement led crypto mining shares to soar on Tuesday when President Joe Biden agreed to withdraw his proposed 30 percent tax on electricity used by companies. Representative Warren Davidson noted that the debt proposal does not include the digital asset mining energy tax and considered it a significant victory.
With this development, Riot Platforms stood out with a 10 percent increase among the largest mining shares. Companies like Iris Energy, Hive Blockchain, Cleanspark, Hut 8 Mining and Marathon Digital Holdings also gained 5.5 percent or more.
President Biden and House Speaker Kevin McCarthy have reached a tentative agreement to suspend the US debt ceiling. Davidson confirmed that the deal excludes tax collection schemes. This arrangement is subject to congressional approval.
The proposal, titled the Digital Assets Mining Energy excise tax law, or DAME law, was submitted as part of President Biden’s proposal for the fiscal year 2024 budget. Under this proposal, any company mining digital assets would be subject to a consumption tax on electricity costs from computing resources they own or lease. The tax rate would initially be 10 percent and would increase to 20 percent in 2025 and 30 percent in the years to come.
