The White House’s Council of Economic Advisers (CEA) said in an online article from treasury.gov that US President Joe Biden is considering imposing a punitive tax on cryptocurrency mining companies for the “harms they impose on society.”
The administration’s blog article argued for a US tax equivalent to 30% of a mining firm’s energy expenses – an extraordinary industry-specific penalty that may jeopardize such firms’ earnings.
“Currently, crypto mining firms do not have to pay for the full cost they impose on others, in the form of local environmental pollution, higher energy prices, and the impacts of increased greenhouse gas emissions on the climate,” according to the CEA’s description of the Digital Asset Mining Energy tax.
While other energy-intensive industries would not face a similar tax, the CEA claims that “cryptomining does not generate the local and national economic benefits typically associated with businesses using similar amounts of electricity.”
The excise tax was initially suggested by the Biden administration in a March 9 paper issued by the United States Treasury Department. The so-called “Greenbook” sets out the administration’s revenue ideas and goals for the next year, but such recommendations sometimes do not survive the process as Congress finalizes the nation’s spending plans.
According to the treasury.gov “Greenbook“, the tax may generate up to $3.5 billion in income over the following ten years.
Riot Platforms (RIOT), Marathon Digital (MARA), Cipher Mining (CIFR), Greenidge Generation (GREE), BitDeer (BTDR), and CleanSpark (CLSK) are among the major mining companies in the United States.