The administration of U.S. President Joe Biden is campaigning for a tax on cryptocurrency miners equal to 30% of the cost of the power they use, citing what it calls “negative spillovers” from the industry. The move follows a raft of legal threats against crypto exchanges by regulators in what industry insiders have said will drive crypto and blockchain technology out of the U.S. 

Fast facts

In a Tuesday blog post titled “The DAME Tax: Making Cryptominers Pay for Costs They Impose on Others,” the White House’s Council of Economic Advisers said that while crypto assets are virtual, “the energy consumption tied to their computationally intensive production is very real and imposes very real costs.”

“Crypto miners’ high energy consumption has negative spillovers on the environment, quality of life, and electricity grids where these firms locate across the country,” the blog said, adding that the environmental impacts of mining operations exist even when miners use existing clean power.

“Crypto mining does not generate the local and national economic benefits typically associated with businesses using similar amounts of electricity. Instead, the energy is used to generate digital assets whose broader social benefits have yet to materialize, as elaborated in the Economic Report of the President,” according to the blog.

In March, the Biden administration proposed the “Digital Asset Mining Energy excise tax” as part of this year’s budget published by the U.S. Treasury Department. The proposal would be effective for taxable years beginning after December 31, 2023, according to the document. The excise tax would be phased in over three years at a rate of 10% in the first year, 20% in the second and 30% thereafter.

The Council of Economic Advisers estimates that the excise tax could raise US$3.5 billion over 10 years.

While the government seems to have crypto miners in its sights, the Securities and Exchange Commission (SEC) has cracked down on crypto trading platforms. In February, the regulator fined U.S. crypto exchange Kraken and shut down its staking program, a move the SEC said was “a win for investors.” In March, it issued a so-called Wells notice to the Coinbase exchange and warned it was considering legal action against the firm over its cryptocurrency staking services and other products.

Last month, the SEC charged Seattle-based crypto exchange Bittrex for operating an unregistered exchange.

Some U.S. states, however, are rolling out a welcome mat for crypto miners, with Arkansas last month joining Montana and Texas to propose legislation to regulate Bitcoin mining and offer mining firms legal protection.

source: forkast.news

#mining #biden #crypto #BTC

Disclaimer

The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading crypto assets comes with a risk of financial loss.

Warren Buffett, one of the world’s most renowned investors and the CEO of Berkshire Hathaway, has reportedly been in talks with senior Biden administration officials regarding the banking crisis. According to Bloomberg News, sources who wished to remain anonymous confirmed that Buffett has been in contact with government officials recently, although it is unclear what role he will play in resolving the banking crisis.

Buffett has a reputation for stepping in during financial crises, often referred to as the “Oracle of Omaha,” he has a history of providing support to troubled financial institutions during times of economic distress. During the 2008 financial crisis, he invested $5 billion in Goldman Sachs, while also offering support to other firms. In 2011, he provided financial support to Bank of America, which was struggling with subprime mortgage issues.

Given his track record, Wall Street seems to be looking to Buffett for solutions to the current banking crisis. The situation has been causing concern, with deposit protection and other measures being put in place to prevent bank runs. Despite these efforts, the crisis continues to spread, with banking stocks falling further.

While it remains unclear what role Buffett will play in the current situation, his involvement is likely to provide some reassurance to investors. He has a long-standing reputation for sound investment decisions and is known for his expertise in the banking sector. As the situation continues to unfold, it will be interesting to see what role Buffett ultimately plays in addressing the current banking crisis.

#warrenbuffett #bank #biden #wallstreet #azcoinnews

This article was republished from azcoinnews.com

 

The White House is showing increasing interest in Biden Bitcoin policy and how it can shape the future of cryptocurrency regulation.
The Biden administration is reportedly scheduled to attend a Bitcoin roundtable in early July with several lawmakers, including U.S. Congressman Ro Khanna (D-CA) and billionaire crypto investor Mark Cuban, according to documents obtained by Bitcoin Magazine on May 15.
Ro Khanna, Mark Cuban And More To Attend Meeting On Bitcoin Regulation
The media outlet says it verified an email from the office of Khanna allegedly confirms the meeting, with the Khanna’s office describing it as “the most significant meeting between policymakers and innovation leaders in blockchain to date.”
According to Bitcoin Magazine, the purpose of the meeting is to “keep Bitcoin and blockchain innovation in the United States.”
Both Khanna and Cuban have advocated for regulatory reform across the cryptocurrency sector, with the Californian congressman most recently supporting the Financial Innovation and Technology for the 21st Century Act (FIT21).

“We need blockchain innovation here in America, while also creating regulatory clarity & proper consumer protections,” Khanna said, calling the bill “an important step forward.”
Joe Biden, Donald Trump Differ On Bitcoin As Polls Narrow
Meanwhile, Cuban has echoed similar sentiments, particularly in regards to how current crypto regulations may affect the November 2024 U.S. presidential election.

During Coinbase’s State of Crypto event last week, the “Shark Tank” star claimed that United States Securities and Exchange Commission (SEC) Chair Gary Gensler could “literally cost Joe Biden the election.”
The current U.S. president has often stood in favor of the SEC’s regulation-by-enforcement approach to digital assets, despite Republican frontrunner Donald Trump’s hands-off stance towards the crypto sector.
Most recently, Biden stopped short of vetoing FIT21, a marked shift in tone from his past statements regarding developing blockchain regulations.
“The Administration is eager to work with Congress to ensure a comprehensive and balanced regulatory framework for digital assets, building on existing authorities, which will promote the responsible development of digital assets and payment innovation and help reinforce United States leadership in the global financial system,” a statement from Biden’s administration following the House of Representatives’ passage of FIT21 said.
Trump, on the other hand, promised to end Biden’s “war on crypto” by ensuring that “the future of Bitcoin will be made in America” in June 14 remarks in West Palm Beach, FL.
Currently, Biden and Trump are virtually tied in election polling, making their each and every stance urgently more critical in the run up to November.
#btc #biden #binance