coinspress.com
President Joe Biden's recent budget proposal for 2025 includes a notable measure targeting cryptocurrency miners: a proposed 30% tax on electricity consumption associated with mining activities.
This proposal aims to address the current regulatory gap concerning digital assets, with the administration considering an excise tax on mining operations.
According to the Treasury Department, entities engaged in digital asset mining, regardless of whether they own or lease computing resources, would be subject to this tax, amounting to 30% of their electricity costs.
The proposal mandates reporting of electricity usage details, including its source and value, with phased implementation starting after December 31, 2024.
Notably, even miners using renewable energy sources like solar or wind power would be affected by this tax.
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While some, like Pierre Rochard of Riot Platforms, see this as an attempt to stifle cryptocurrencies like Bitcoin, others, including U.S. Senator Cynthia Lummis, argue that such a tax could undermine the industry’s growth within the United States.
This proposal represents a renewed effort by the Biden administration following a similar attempt in the 2024 budget proposal.