On Sunday, President Joe Biden and House Representative Kevin McCarthy reached an agreement in principle to raise the US government debt limit. The two political parties negotiated for months to reach this debt ceiling agreement, which has yet to be officially approved.
US Congressman Warren Davidson confirmed that they successfully blocked several taxes proposed by the Biden administration in the deal, including a proposed 30% tax on crypto miners' electricity bills.
Earlier this month, Biden proposed a Digital Asset Mining Energy (DAME) excise tax to address the economic and environmental costs of current practices for mining crypto assets.
Based on the proposed tax bill, after the phase-in period, firms will face a tax equal to 30 percent of the cost of electricity they use in crypto mining. However, the proposed tax will not be implemented if the current budget deal goes through. The final vote on the debt ceiling deal will be held on Wednesday.
Some congressional Republicans expressed displeasure with the tentative debt ceiling deal that House Speaker Kevin McCarthy reached with President Biden. Republican lawmakers threatened to vote "no" on the debt ceiling deal despite fears of a severe economic downturn in the US and globally.
After news of the debt ceiling deal, BTC traded over 3% above $28,000 before taking a small dip.
