- The Biden administration continues to take a more heavy-handed approach toward the cryptocurrency industry as the President's Council of Economic Advisers is now pushing for a 30% Digital Asset Mining Energy tax.
The CEA went on to lay out its case for instituting the DAME excise tax, which is referred to as an “example of the Administration’s efforts to fight climate change and reduce energy prices.” Many in the blockchain ecosystem see this as yet another avenue of attack being used by the government to crack down on an industry that they don’t like or see as a threat. “This puts a clear line in the sand that they do not like the industry,” Tom Mapes, director of energy policy at the Chamber of Digital Commerce said. “They are looking for ways to hamstring it. This is just a way to go after the industry which they do not support.
But the energy use by the mining industry is also increasing as the crypto industry expands, and the CEA is looking to get out ahead of any future problems. In Texas, the operation of ten large-scale Bitcoin mines has resulted in higher prices for all customers amid an effort by the state’s grid operators to make sure supply and demand are in balance and avoid blackouts.