Sen. Cynthia Lummis (R-Wyo.) denounced as a “blatant attack” on innovation and American excellence Joe Biden’s administration’s plan to tax Bitcoin (CRYPTO: BTC) mining businesses by 30%.

What transpired: The senator listed the advantages of Bitcoin mining activities in a so-called “orange paper” that was made public on Tuesday. He also discussed how taxing them might have a negative impact on the environment, the state’s tax income, and the energy infrastructure.

Contrary to what the administration asserts, Lummis reports that mining operations really boost U.S. energy grids.

According to her, miners can work with utilities to modify their energy use in response to changes in supply and demand, which will help to maintain grid balance. She gave Texas as an example, which is the centre of Bitcoin mining in the United States.

The legislator who supported cryptocurrencies also brought up environmental issues, claiming that the 30% tax would deter people from using stranded energy sources like methane to generate electricity. Methane, a byproduct of producing natural gas, would then be discharged into the atmosphere, creating serious concerns.

Last but not least, Lummis issued a warning over the potential damage to the nation’s tax income due to a miner exodus to jurisdictions with more lenient regulations due to the 30% charge.

Why It Matters: In light of the “harms they impose on society,” the Biden administration has suggested a punitive tax on bitcoin mining businesses, which is why Lummis is defending them.

The Council of Economic Advisers claims that because the industry is not required to pay for all of the expenses associated with pollution, carbon emissions, and increased energy prices, it now enjoys unfair financial advantages.

The United States was the leading nation in the world for Bitcoin mining in 2023, contributing 37% of the world’s hash rate, according to a Visual Capitalist study.