In a renewed effort to combat climate change, the Biden administration has set its sights on taxing the cryptocurrency mining industry with a 30% Digital Asset Mining Energy (DAME) tax. According to sources, White House advisors have been pushing for the tax as a way to reduce the industry’s alleged impact on the environment.

The proposed crypto-mining tax was initially announced on March 9 as part of President Joe Biden’s FY2024 budget. The tax aims to impose a phased-in 30% excise tax on electricity used by crypto-miners. While the move has been met with mixed reactions from industry players, the Biden administration is determined to move forward with its plans.

Some industry experts have criticized the proposed tax, saying that it could have negative consequences for the United States’ position as a leader in the crypto-mining industry. The tax could make it more difficult for small and medium-sized miners to compete with larger players and could lead to a decrease in innovation within the industry.

Despite these concerns, the Biden administration is confident that the proposed tax will help to reduce the environmental impact of crypto-mining activities. The tax would apply to all digital asset mining operations, regardless of their size or location.

Critics have argued that the proposed tax would be difficult to enforce and could lead to increased regulatory burdens for the industry. However, the White House advisors have argued that the tax is necessary to promote sustainable practices within the industry and to reduce the carbon footprint of crypto-mining activities.

The DAME tax is part of a broader push by the Biden administration to promote sustainable energy practices and reduce the country’s dependence on fossil fuels. The administration has set a target of achieving net-zero carbon emissions by 2050 and has outlined a number of policy proposals aimed at achieving this goal.

In addition to the DAME tax, the administration has also proposed a number of other measures aimed at reducing the environmental impact of crypto-mining activities. These measures include increased regulation of mining operations, incentives for the use of renewable energy sources, and the development of new technologies to reduce energy consumption.

The proposed tax has been met with mixed reactions from the crypto community. While some industry players have expressed concern about the potential impact on innovation and competition within the industry, others have welcomed the move as a step towards greater sustainability and environmental responsibility.

Despite the controversy surrounding the proposed tax, the Biden administration is determined to move forward with its plans. The tax is just one part of a broader effort to promote sustainable energy practices and reduce the environmental impact of digital asset mining activities.

The implementation of the DAME tax is likely to be a long and complex process, with a number of legal and regulatory hurdles to overcome. However, the Biden administration is committed to promoting sustainable practices within the crypto-mining industry and reducing the industry’s impact on the environment.