On Thursday, March 9, U.S. President Biden revealed his budget proposal for 2024. Under the Biden Budget, the U.S. Treasury Department is looking to introduce a 30% excise tax on crypto mining operations.

According to a section in the Treasury department’s 2024 revenue proposals document, the Biden administration advances the motion that “Any firm using computing resources, whether owned by the firm or leased from others, to mine digital assets would be subject to an excise tax equal to 30 percent of the costs of electricity used in digital asset mining.”

For full implementation of this tax fee, all crypto mining firms will be required to submit reports detailing their electricity consumption amount and its value. Therefore, this proposal will also cover crypto-mining firms which acquire power from off-grid sources like power generating plants, with the 30% tax calculated based on estimated electricity cost.

(By Semilore Faleti)