US Treasury Aims to Curb Energy Use in Crypto Mining with New Tax Proposal

Tuesday, 12 March 2024, 10:02

The Biden administration has put forward a plan to implement a 30% tax on electricity consumption by crypto mining firms, citing environmental concerns and the need for regulatory measures. This tax proposal, starting at 10% and gradually increasing to 30% by 2025, aims to address the escalating energy demands of the crypto mining industry and its adverse environmental impacts. Despite facing backlash and criticism, the tax initiative signifies a pivotal step towards ensuring sustainability and transparency in the digital asset space.

Why the US Department of Treasury Proposed a 30% Mining Tax?

The proposal is grounded in the belief that the rising energy demand of the crypto-mining industry exacerbates environmental degradation. Moreover, it raises environmental justice issues and threatens the stability of local utilities and communities.

The Impact of the Tax Proposal

An excise tax on electricity usage by digital asset miners could reduce mining activity along with its associated environmental impacts and other harms, the proposal stated. Firms would be required to report their electricity consumption in detail, adhering to the gradual tax increment over three years.

Controversy and Perspectives

  • Senator Cynthia Lummis has criticized the tax, expressing concerns over stifling industry growth.
  • Pierre Rochard argues that the tax is a move to suppress Bitcoin and promote central bank digital currencies (CBDCs).

This ongoing debate highlights the tension between industry innovation and regulatory oversight in the evolving digital asset landscape.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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