The White House Council of Economic Activities (CEA) is looking to punish the crypto mining sector saying that the high energy consumption by crypto miners has an impact on the environment and quality of life.
In a big step Biden The administration is looking at imposing a huge tax on crypto mining activities taking place in the United States. On Tuesday, May 2, the White House Council on Economic Activities (CEA) argued over the harm crypto mining operations could cause to society.
After China banned crypto mining activities in 2021, the US saw a strong influx of crypto miners settling in crypto-friendly jurisdictions such as Texas and others. Now, the US is one of the top destinations contributing a major portion of the global crypto mining activity.
The CEA made the case for a US tax equal to 30% of the energy costs incurred by a mining firm. This comes as an unusual industry-specific penalty that could jeopardize the profits of such businesses. CEA prepares case for Digital Asset Mining Energy (DAME) excise tax. In a blog post appearing Tuesday on the White House website, the CEA wrote:
“The high-energy consumption of cryptominers has a negative impact on the environment, quality of life and electricity grids where these companies are located across the country. Currently, cryptomining firms do not have to pay the full costs imposed on others in the form of local environmental pollution, higher energy prices and the effects of rising greenhouse gas emissions on the climate. DAME encourages tax firms to start better accounting for the damage they do to society.
Earlier this year, in March 2023, the Biden administration proposed an excise tax published by the US Treasury Department. This “Greenbook” outlines the administration’s proposals and priorities for generating revenue for the next year. According to estimates, this proposal could generate billions of dollars in revenue over the next decade.
Crypto industry players rebel against the measures
Critics of the proposed tax note that the crypto-mining industry is unfairly targeted. Speaking to Yahoo News, Tom Mapes, director of energy policy at the Chamber of Digital Commerce, said, Said,
“It puts a clear line in the sand that they don’t like the industry. They’re looking for ways to hamstring it. It’s a way of going against an industry they don’t support.
On the other hand, congressional Republicans have opposed the efforts of the administration and regulators to punish the crypto sector. There is a high likelihood that the Republican-controlled House may not approve taxes that would punish the industry.
Bhushan is a FinTech enthusiast and has a great understanding of the financial markets. His interest in economics and finance drew his attention to the newly emerging blockchain technology and cryptocurrency markets. He is in the process of continuous learning and keeps motivating himself by sharing his acquired knowledge. In his spare time he reads thriller fiction novels and occasionally explores his culinary skills.
More Read
Bitcoin Crypto Related Post
