Biden Administration Proposes 30% Cryptocurrency Mining Tax

CEA under US President Joe Biden proposed to include in the federal budget a 30% tax on electricity used in cryptocurrency mining. The initiative is aimed at minimizing the impact on climate change, writes Yahoo.

“High energy consumption by miners negatively affects the environment, quality of life and the power grids where these firms are located across the country,” – the message says.

In an upcoming publication, the Council will argue in favor of an excise tax Digital Asset Mining Energy (DAME).

The CEA noted that its introduction will force firms to pay better attention to the harm “that they cause to society.” Currently, their costs do not take into account “pollution, rising fuel prices and the impact of rising greenhouse gas emissions on the climate.”

Tom Mapes, director of energy policy at the Chamber of Digital Commerce, sees the administration’s move as a move to “attack an industry they don’t support.”

“It clearly shows that they don’t like this industry. They are looking for ways to limit it.” he explained.

According to white house report, cryptocurrency mining consumes more energy than Australia as a whole. In the USA, where about a third of all mining is concentrated, this type of activity accounts for from 0.9% to 1.7% of all total costs.

The New York Times estimates that the 34 largest businesses use as much electricity as nearly 3 million households. Ten Texas-based companies have caused higher prices for all consumers after the demand they generated created blackout risks.

The CEA pointed to the need for federal regulation that takes into account the social costs of mining cryptocurrencies.

Experts proposed a phased introduction of the tax over three years, starting next year from 10%, then increasing to 20% and 30%.

According to calculations, DAME will bring in $3.5 billion over ten years.

In an interview Forbes Economist James Browell said it would make more sense to tax greenhouse gas emissions rather than electricity consumption. The current proposal “punishes” companies using “clean fuels,” he added.

The White House as a whole does not see the benefit to society from mining.

“It is not yet clear what the economic benefits of this activity are. There are concerns about the risk to financial stability and, of course, environmental issues,” advisers commented.

Mapes disagreed with the latter argument. According to the expert, the White House is selective in choosing winners and losers among industries.

Recall that the crypto community criticized the article NYT about bitcoin mining.

CEA under US President Joe Biden proposed to include in the federal budget a 30% tax on electricity used in cryptocurrency mining. The initiative is aimed at minimizing the impact on climate change, writes Yahoo.

“High energy consumption by miners negatively affects the environment, quality of life and the power grids where these firms are located across the country,” – the message says.

In an upcoming publication, the Council will argue in favor of an excise tax Digital Asset Mining Energy (DAME).

The CEA noted that its introduction will force firms to pay better attention to the harm “that they cause to society.” Currently, their costs do not take into account “pollution, rising fuel prices and the impact of rising greenhouse gas emissions on the climate.”

Tom Mapes, director of energy policy at the Chamber of Digital Commerce, sees the administration’s move as a move to “attack an industry they don’t support.”

“It clearly shows that they don’t like this industry. They are looking for ways to limit it.” he explained.

According to white house report, cryptocurrency mining consumes more energy than Australia as a whole. In the USA, where about a third of all mining is concentrated, this type of activity accounts for from 0.9% to 1.7% of all total costs.

The New York Times estimates that the 34 largest businesses use as much electricity as nearly 3 million households. Ten Texas-based companies have caused higher prices for all consumers after the demand they generated created blackout risks.

The CEA pointed to the need for federal regulation that takes into account the social costs of mining cryptocurrencies.

Experts proposed a phased introduction of the tax over three years, starting next year from 10%, then increasing to 20% and 30%.

According to calculations, DAME will bring in $3.5 billion over ten years.

In an interview Forbes Economist James Browell said it would make more sense to tax greenhouse gas emissions rather than electricity consumption. The current proposal “punishes” companies using “clean fuels,” he added.

The White House as a whole does not see the benefit to society from mining.

“It is not yet clear what the economic benefits of this activity are. There are concerns about the risk to financial stability and, of course, environmental issues,” advisers commented.

Mapes disagreed with the latter argument. According to the expert, the White House is selective in choosing winners and losers among industries.

Recall that the crypto community criticized the article NYT about bitcoin mining.