A new budget proposal aims to reduce mining activity by subjecting crypto mining firms in the United States to a 30% tax on electricity costs. The tax would be implemented gradually over a period of three years, reaching the target 30% rate by the end of 2026. The firms would also need to report the type and amount of electricity they use, regardless of whether they use off-grid electricity. The proposal explicitly states that the change aims to reduce mining activity, along with its associated environmental impacts and other harms. However, some in the crypto community have criticized the proposal’s structure, noting that it should penalize or tax the carbon footprint of crypto mining rather than total energy usage. This proposal follows United States Senator Edward Markey and Representative Jared Huffman’s intentions to reintroduce the Crypto-Asset Environmental Transparency Act in Congress to promote greater transparency around crypto mining and its environmental impacts.
