Biden Administration Proposes 30% Tax On Crypto Mining To Counter Environmental Impact
May 03 2023 - 8:25AM
NEWSBTC
Several US authorities have raised concerns regarding the
environmental impact of crypto mining. Previously, US lawmakers
probed the crypto mining energy use and environmental impact.
Biden’s administration is taking these concerns to another level.
Biden’s Council of Economic Advisers (CEA) announced a 30% digital
asset mining tax to offset its environmental impact. The new tax
rule tagged DAME will take effect after a phase-in period. Bitcoin
Energy Consumption Attracts New Tax Rules Crypto mining electricity
consumption and carbon emission have been a bone of contention in
the United States over the past years. A recently published New
York Times article claimed Bitcoin has a voracious appetite for
electricity, sparking several reactions among crypto community
members. Related Reading: Bitcoin Analysis: How To Prepare For
Today’s FOMC Meeting The CEA announced plans to impose a 30% tax on
all crypto-mining activities. The council believes the crypto
mining industry’s operations negatively impact the environment and
is ready to counter them. The proposed tax, tagged Digital Asset
Mining Energy (DAME), aims to make crypto mining firms take
responsibility for their environmental impact. According to the
CEA’s announcement, the new tax rules will have a phased-in period
before taking its course. Under the new tax guidelines, all mining
firms in the US would pay taxes on 30% of their total electricity
usage. The CEA feels crypto miners must take responsibility for the
environmental pollution they impose on the local community from the
increased greenhouse gas emissions. Also, the CEA believes the
crypto firms aren’t fully paying the cost of these pollutions,
considering their energy consumption rate. The council cited the
recently published New York Times (NYT) article, which criticized
the digital asset industry for the environmental impact of its
mining operations. Crypto Community Reacts To New Bitcoin Mining
Tax The proposed DAME tax sparked reactions among members of the
crypto community. Many tagged the tax as unfair, criticizing the
government for the high tax without incentivizing clean energy
usage. Pierre Rochard, Riot Platforms’ VP of Research, who
previously criticized the NYT’s article, condemned the DAME tax.
Related Reading: Top 5 Cryptos To Watch This Week Amid US Banking
Crisis According to Rochards, the White House targets Bitcoin at
the wrong time. To Rochard, the US government should instead focus
on the failing banking system. Featured Image/Pexels, chart/
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