Proposed Digital Asset Mining Energy intends to get crypto miners to pay for the societal damage caused.

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Miners in the firing line

Yahoo News claims that a Digital Asset Mining Energy (DAME) tax is being proposed by the Council of Economic Advisers (CEA), an agency within the United States Executive Office of the President.

According to the CEA, cryptocurrency miners harm society by increasing energy costs while operating unreported and contributing to increased local pollution and greenhouse gas emissions.

The organization asserted its proposed Woman expense would change the hurtful natural and social results of crypto mining.

“Cryptominers’ high-energy consumption has negative spillovers on the environment, quality of life, and electricity grids where these firms locate across the country.”

The Texas Blockchain Council recently launched its “Don’t Mess With Texas Innovation” campaign, which aims to block a bill designed to end incentives for Bitcoin miners in the state. Proof-of-work mining has recently become a political issue, with advocates fighting back against efforts to stifle mining activities within the United States.

Likewise, during a new Senate hearing council, Representative Cynthia Lummis contended that natural guidelines, as set out by the Crypto-Resource Ecological Straightforwardness Act, ought not be utilized to oblige excavators.

War on crypto

Dennis Porter, CEO of the Satoshi Action Fund, made a comment regarding the tax proposal, describing it as an unfair and discriminatory measure that would suppress the Bitcoin mining industry in the United States.

He went on to say that, if it were implemented, mining companies would leave the United States, driving innovation and capital to more accommodating jurisdictions.

“Imagine if we put a 30% tax on internet companies in the 90’s. It would have ensured all the jobs and economic growth occurred outside the USA.”

WhaleWire took a position that was more extreme, stating that the DAME tax would “completely destroy Bitcoin,” which would result in the collapse of the network. He stated that this scenario would also have positive price effects.

“If you think we’re cheap now… you’re in for a treat!“

Following China’s Bitcoin mining ban in May 2021, the U.S. became the biggest mining country, accounting for approximately 35% of the total hash rate by January 2022.

More recently, Bitcoin hash rate continued to climb, reaching a new all-time high of 440.7M TH/s on May 1 – suggesting mining confidence.