The White House has proposed a controversial tax on crypto mining to help offset its economic and environmental impact.
Crypto mining has been criticized for its environmental impact and the strain it puts on power grids. The White House is looking for a way to address these concerns while also looking for ways to help fund Medicare, Social Security, and deficit reduction.
A proposed solution is the Digital Asset Mining Energy (DAME) excise tax, which would impose a 30% tax on crypto mining. The White House blog says the tax would help offset the harms crypto mining imposes on others:
Currently, cryptomining firms do not have to pay for the full cost they impose on others, in the form of local environmental pollution, higher energy prices, and the impacts of increased greenhouse gas emissions on the climate. The DAME tax encourages firms to start taking better account of the harms they impose on society.
Needless to say, the news is not being well-received in the crypto community. Brian Quintenz, Head of Policy at A16z Crypto — Andreessen Horowitz’s crypto arm — took to Twitter to point out issues with the proposed law.
A16z Crypto has taken its concerns a step further, writing a letter to the UK government, urging it not to follow in the US’ footsteps with a “one-size-fits-all” approach, according to Blockworks.
There’s enough opposition to the DAME Tax to put its future in jeopardy. If it does pass, however, it will quickly lead to crypto miners relocating their operations to friendlier countries.