Biden Urges Congress to Eliminate American Bitcoin Mining Industry

President Biden has proposed a 30% excise tax on the electricity used for Bitcoin mining as part of the fiscal 2025 budget proposal. The tax, known as the Digital Asset Mining Energy tax (DAME), aims to raise $3.5 billion over a decade. The White House stated that the tax is intended to make miners pay their fair share of costs imposed on local communities and the environment. However, critics argue that such a tax could lead to the demise of the American Bitcoin mining industry, potentially causing job losses and tax revenue decline. There are concerns that less efficient miners may be forced out of business or relocate to countries with dirtier energy standards. Additionally, some fear that even environmentally friendly miners could struggle to remain competitive under the tax burden. While the White House has cited China's complete ban on Bitcoin mining as an example, there are calls for the administration to reconsider the proposal and seek industry feedback before moving forward.