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The Biden administration is pushing for a 30% digital mining tax in the US

The Council of Economic Advisers has announced that it will push for a 30% tax on cryptocurrency mining to combat its environmental impact. The new tax is called the DAME tax and will have a gradual period.

The Biden administration is trying to impose a 30% tax on cryptocurrency mining, according to an official announcement released by the Council of Economic Advisers. The latter believes that the crypto mining industry is associated with a strong negative impact on the environment and that it must be confronted.

DAME tax proposed by CEA

The new tax is known as an excise tax (DAME). It is an attempt to keep crypto companies responsible for its environmental impact. Concern about environmental costs has been discussed frequently over the past year. The United States is not the only country considering the relevant measures.

The CEA has proposed tax rules, which will come into effect after a phased implementation period. The tax will be equal to 30% of the cost of electricity used. The body feels this is necessary because crypto mining companies currently “don’t have to pay the full cost they impose on others, in the form of local environmental pollution, higher energy prices, and the effects of increased greenhouse gas emissions on the climate.”

Use of electricity by encryption: White House

The CEA post also refers to an article in the New York Times, which was criticized by the cryptocurrency industry, which talked about the impact of 34 digital mining operations. He also mentioned that there are environmental impacts when using clean energy sources for mining.

The crypto mining community has called DAME taxes unfair. They also stated that the tax does not incentivize the use of clean energy. Even those outside the crypto space have criticized the structure of the tax scheme.

Riot Platforms Vice President of Research Pierre Rochard, who criticized the New York Times article, He said It was the “worst moment imaginable for the White House to draw attention” to bitcoin.

Rochard also criticized the current state of the global financial system, especially the banking system. others focused Although other industries were also responsible for some of the issues mentioned in the post.

Bitcoin mining has skyrocketed in the US since China banned cryptocurrency mining. Bitcoin mining stocks also outperformed technology stocks in 2023, with Core Scientific the biggest gainer.

However, the cryptocurrency mining environment is changing. North Carolina recently debated a ban on cryptocurrency mining, shortly after Texas also removed mining-related incentives.

Disclaimer

Adhering to the Trust Project’s guidelines, BeInCrypto is committed to providing unbiased and transparent reporting. This news article aims to provide accurate and timely information. However, readers are advised to independently check the facts and consult with a professional before making any decisions based on this content.

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