White House Considers 30% Tax on Crypto Mining Operations for Environmental and Economic Harm
The White House's Council of Economic Advisers has proposed a tax equal to 30% of a crypto mining firm's energy costs, citing the environmental pollution, increased greenhouse gas emissions, and higher energy prices caused by such operations. Dubbed the Digital Asset Mining Energy tax, the levy would be an industry-specific penalty that could potentially threaten the profits of U.S. mining firms. The Biden administration first proposed the excise tax in March, with estimates suggesting it could raise up to $3.5 billion in revenue over the next decade. While Republicans have historically resisted penalizing the crypto sector, the proposal highlights wider concerns about the potential economic impact of mining on local communities.