US Senator Cynthia Lummis is preparing to introduce a bipartisan “Mined in America Act” bill that would incentivize Bitcoin mining; under the plan, miners would be able to sell Bitcoin to the government in exchange for tax benefits (CGT exemption).
The bill aims to encourage Bitcoin mining within the country and to bring critical infrastructure in this area back to the US. The plan also envisions a model where miners can benefit from capital gains tax (CGT) advantages if they sell their Bitcoin directly to the government. This approach aims to both incentivize mining and increase the government’s strategic Bitcoin reserve.
One of the key aspects of the bill is to legalize the executive order signed by Donald Trump, which envisions the creation of a “Strategic Bitcoin Reserve.” The bill proposes establishing an official Bitcoin reserve within the Treasury Department.
The proposal also includes the creation of a voluntary certification program called “Mined in America.” Under this program, mining facilities operating in the US will be required to meet specific safety and standards criteria. Furthermore, the plan is to gradually phase out mining equipment linked to foreign competitors and support domestic production.
The bill aims to support the sector by utilizing existing federal energy and rural development programs, thereby financing the transformation process without creating new expenditure items. It also plans to provide technical support to domestic manufacturers to develop energy-efficient and safe mining equipment in the United States.
Dennis Porter, CEO of the Satoshi Action Fund, which supports the bill, pointed out that although the US controls approximately 38% of the global Bitcoin hash rate, 97% of the hardware used is sourced from China, highlighting that this dependence poses a risk to national security. According to Porter, the law aims to reduce this dependence by creating an ecosystem between domestic production, energy infrastructure, and strategic reserves.
*This is not investment advice.
Continue Reading: BREAKING: A Bill Is Being Drafted in the U.S. That Would Allow Miners to Sell Bitcoin to the Government – Major Development