---
title: "White House Proposes 30 Percent Tax on Crypto Mining"
description: "The White House is proposing a 30 percent tax on crypto mining operations to better reflect the effects they're having on the environment."
date: "2023-05-04"
modified: "2023-05-04"
authors:
  - name: "Victor Tangermann"
    job_title: "Senior Editor"
    link: "https://futurism.com/authors/victor"
url: "https://futurism.com/the-byte/white-house-30-percent-tax-crypto-mining"
categories:
  - "Blockchain"
  - "Cryptocurrency"
  - "Future Society"
tags:
  - "bitcoin"
  - "cryptocurrency mining"
  - "the digest"
  - "white house"
---

# White House Proposes 30 Percent Tax on Crypto Mining

![The White House is proposing a 30 percent tax on crypto mining operations to better reflect the effects they're having on the environment.](<https://futurism.com/wp-content/uploads/2023/05/white-house-30-percent-tax-crypto-mining.jpg>)
*\<em\>Image: STR/AFP via Getty Images\</em\>*

## Death, Taxes, Crypto

The White House is proposing a 30 percent tax on crypto mining operations, to better reflect the effects they're having on the environment.

The "Digital Asset Mining Energy (DAME) excise tax" is meant to address the "economic and environmental costs of current practices for mining crypto assets," according to a new White House [statement](<https://www.whitehouse.gov/cea/written-materials/2023/05/02/cost-of-cryptomining-dame-tax/>). "After a phase-in period, firms would face a tax equal to 30 percent of the cost of the electricity they use in crypto mining."

It's a notable move to address growing concerns over the [considerable environmental footprint](<https://futurism.com/the-byte/crypto-mining-environment-update>) of crypto operations, which often [draw from polluting sources](<https://www.ewg.org/research/proof-problems-bitcoin-minings-pollution-toll-us-communities?auHash=2mMi07eKQdYd5YyKQ9Asq5X1upgbwx8LpwFfGP2bEUc>) of electricity — and the latest regulatory move to cast a shadow on the formerly red-hot digital currencies.

## No Benefits

According to a [2022 report](<https://www.whitehouse.gov/wp-content/uploads/2022/09/09-2022-Crypto-Assets-and-Climate-Report.pdf>) by the White House Office of Science and Technology Policy (WHOSTP), crypto mining used between 120 and 240 billion kilowatt-hours per year, more than the electricity usage of an entire country.

In the US alone, the WHOSTP estimates crypto consumes up to a staggering 1.7 percent of total electricity usage, the equivalent of all home computers or residential lighting, and between 0.4 and 0.8 percent of total US greenhouse gas emissions.

And on an infrastructure level, the [*New York Times* reported](<https://www.nytimes.com/2023/04/09/business/bitcoin-mining-electricity-pollution.html>) last month that dozens of Bitcoin mines across the country are putting immense pressure on the power grid and raising electricity prices for nearby residents, despite them having nothing to do with crypto.

So what do we have to gain from all this mining? According to the White House, not an awful lot, apart from [noise](<https://futurism.com/the-byte/residents-annoyed-crypto-mine-noise>) and [pollution](<https://futurism.com/the-byte/crypto-mining-environment-update>) — especially when miners aren't making use of clean power.

"Cryptomining does not generate the local and national economic benefits typically associated with businesses using similar amounts of electricity," the White House wrote. "Instead, the energy is used to generate digital assets whose broader social benefits have yet to materialize."

## Stifling Innovation

Unsurprisingly, the news of a possible tax was met with outrage by the crypto community.

"So, apparently it doesn’t matter where the electricity comes from — coal, gas, 100 percent renewable, etc." [tweeted](<https://twitter.com/BrianQuintenz/status/1653540283831955457?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1653540283831955457%7Ctwgr%5E8ba20233ef5408fc26473447cd545a03b83de71d%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fdecrypt.co%2F138832%2Fwhite-house-report-30-percent-crypto-mining-tax>) head of policy at A16z Crypto Brian Quintenz. "If the government doesn’t like how you use the energy, you’ll be penalized."

In short, plans to tax crypto mining in the US will likely face plenty of opposition.

With analysts predicting that [2022's crypto winter](<https://futurism.com/the-byte/investors-lose-savings-crypto-winter>) could soon be over, the topic will be more relevant than ever as crypto miners could soon be looking for ways to re-enter the market.

**More on crypto mining:** *[Mining Crypto Is Even Worse for the Environment Than We Thought](<https://futurism.com/the-byte/crypto-mining-environment-update>)*

## Author
I've been at Futurism since 2017, where my role has evolved to encompass design, writing, and increasingly editing. I've always been fascinated by space exploration and advanced transportation, which I've leaned into by interviewing luminaries in those fields while closely following the dimensions of policy and regulation that allow next-generation projects to succeed -- or, sometimes, to fail. I'm also keenly interested in the effects of generative AI on society, policies, and democratic institutions, as well as clean energy, physics and biology, and the vagaries of tech leadership. My work for Futurism has been cited by publications including Ars Technica, Gizmodo, PC Magazine, Jalopnik, Fox News, and the New York Post. I spent my childhood living in locations including Manila, the Philippines, and Geneva, Switzerland, attended McGill University, and now live in Toronto, Canada. Before Futurism I worked at AskMen and a small photography studio. In my free time, I'm an avid gardener, foodie, and craft beer lover, as well as a maker of artisanal hot pepper sauces. I have a magnificent dog named Freida.

### Author social links  
[Bluesky](<https://bsky.app/profile/vtanger.bsky.social>)