Senator Cynthia Lummis from the United States is set to unveil a bipartisan piece of legislation known as the “Mined in America Act,” which aims to promote Bitcoin mining. This initiative would allow miners to sell their Bitcoin directly to the government, offering them tax incentives such as exemptions from capital gains tax (CGT).
The primary goal of this bill is to stimulate domestic Bitcoin mining and restore essential infrastructure related to it within the United States. The proposed framework includes provisions for miners who sell their Bitcoin directly to governmental entities, allowing them access to CGT benefits. This strategy not only seeks to encourage mining activities but also aims at bolstering the government’s strategic reserves of Bitcoin.
A significant feature of this legislation is its intention to legitimize an executive order previously issued by Donald Trump, which called for establishing a “Strategic Bitcoin Reserve.” The bill suggests that an official reserve for Bitcoin be created under the Treasury Department’s oversight.
Additionally, there are plans for a voluntary certification initiative named “Mined in America.” Mining operations based in the US will need to adhere strictly to defined safety and quality standards under this program. The proposal also envisions gradually eliminating mining equipment associated with foreign competitors while fostering local production capabilities.
This legislative effort seeks financial support through existing federal energy and rural development initiatives, enabling transformation without introducing new budgetary items. It further intends on providing technical assistance aimed at helping domestic manufacturers produce energy-efficient and safe mining apparatus within American borders.
Dennis Porter, CEO of Satoshi Action Fund—which advocates for this legislation—emphasized that while approximately 38% of global Bitcoin hash rate originates from the US, around 97% of related hardware comes from China. He pointed out that such reliance could threaten national security. According to Porter, this law strives towards diminishing that dependency by fostering an ecosystem linking local manufacturing with energy resources and strategic reserves.
*This content does not constitute investment advice.