Joe Biden wants to tax cryptocurrency miners

Joe Biden

Joe Biden, President of the United States – Credit: Shutterstock

As part of the 2024 budget, the Biden administration made a proposal to tax the companies specialized in the mining from crypto up to 30% from amount of theelectricity that they consume.

The Biden administration said Tuesday that the new proposal Digital Asset Mining Energy Tax aimed to implement a tax for the crypto-currency minerswhich would represent 30% of the amount of theelectricity consumed during their activity.

Currently, crypto mining companies do not have to pay the cost they impose on others in the form of local environmental pollution, higher energy prices, and the climate impacts of increased greenhouse gas emissions. The DAME tax provides an incentive for companies to better account for the damage they do to society,” a statement said.

According to the administration Biden, the “high” energy consumption of digital coin miners creates ” negative impacts on the environment and power grids,” and even when they use green energy. “The intensive and often volatile energy consumption of cryptomining can also drive up electricity prices,” she says.

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“In addition to these known costs and risks, the cryptomining does not generate the local and national economic benefits typically associated with businesses using similar amounts of electricity. Instead, energy is used to generate digital assets whose broader social benefits are not not yet realized “, concludes the communiqué, specifying that the tax should allow to collect 3.5 billion dollars over the next 10 years.

The United States today has many large firms in the crypto-miningSeveral of them are listed on the stock exchange. Among them are Marathon Digital, Greenidge and Terawulf.

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Earlier this year, MEPs had also raised the possibility of introducing a tax on cryptocurrency mining in Europe.

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