- The White House is proposing to add a 30% tax to the cost of the electricity used for mining cryptocurrencies.
- The tax plan will be introduced slowly over the course of three years.
The Biden Administration has proposed a 30% tax on electricity used for cryptocurrency mining as part of its budget plan for 2024. This tax plan was shared on the White House website through a blog post.
The DAME Excise Tax is the proposed tax that will be gradually introduced over three years. Recently, there have been more criticisms about the energy consumption and environmental impact of crypto mining.
Protecting Against Emerging Risk
The government intends to make cryptocurrency miners responsible for the expenses they cause to others by implementing the DAME Excise Tax, as stated in a blog post. This tax proposal will be included in the government’s 2024 budget plan.
The DAME tax was proposed by the Biden Administration to tackle potential risks related to digital assets and solve long-standing national issues. The tax is also aimed at combating the economic and environmental drawbacks associated with current crypto mining practices.
The administration’s plan makes it clear that they have concerns about the effects of cryptocurrency mining on energy consumption and the environment.
In contrast, many states in the US have enacted laws to protect crypto mining, leading to conflicting perspectives on the issue. It is uncertain how the DAME tax plan will be received. The tax will be slowly introduced over the next fiscal year. To minimize the environmental impact, some crypto-mining companies have switched to renewable energy sources.
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