The United States Department of the Treasury has proposed a new budget measure that would impose a 30% tax on electricity costs for crypto mining firms based in the country. The tax, which would be phased in gradually over three years, would apply to any company using owned or rented mining rigs. In addition, miners would be required to report the amount and type of electricity they use and the value of that electricity, even if they use off-grid power.
The proposal is aimed at reducing the environmental impact and other negative effects of mining, which the Treasury notes increases energy prices for those who share a grid with miners and creates uncertainty and risks for local utilities and communities. The Treasury argues that the tax would help to reduce mining activity and associated harms.
Some members of the crypto community have criticized the proposal, noting that it penalizes total energy usage rather than carbon footprint. However, the proposal comes just one week after the reintroduction of the Crypto-Asset Environmental Transparency Act in Congress, which would require crypto-mining enterprises to disclose their emissions data and mandate an interagency inquiry into the effects of mining.
Overall, the proposal represents a significant development in the regulation of crypto mining in the United States. While some may argue that the tax is too punitive or flawed in its design, it is clear that policymakers are increasingly focused on mitigating the negative externalities of mining activity. As such, mining firms may need to adapt their operations and strategies to remain compliant with evolving regulatory frameworks.
