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The Biden administration has proposed an initiative that could limit mining in the United States. Thus, miners will now have to pay a 30% tax for their activities. This move is aimed at offsetting energy costs and reducing mining itself.
According to the US Treasury, any firm using owned or leased energy resources will be subject to a 30% excise tax on crypto mining electricity usage.
The tax will be introduced in several steps, phasing in at 10% in year one and climbing to 30%. The tax will apply to electricity generated from both the grid and independent sources. Thus, a 30% tax will be applied to all electricity use from cryptocurrency mining.
Miners will be obliged to report on the amount, type, and cost of electricity consumed. The US Environmental Protection Agency will monitor harmful emissions from mining.
Miners will be responsible for estimating the cost of the electricity generated by power plants.
A tax on crypto electricity consumption is aimed at reducing the environmental impact of mining activities.
Published 20 March 2023
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