Biden Proposes 30% Tax on Crypto Mining in 2025 Budget

The proposed tax aims to address environmental concerns and generate significant revenue, despite opposition from industry and some lawmakers.

President Joe Biden's 2025 budget proposal includes a 30% excise tax on electricity used in crypto mining, set to be phased in over three years.
The tax is part of a broader effort to regulate the crypto industry, including applying wash sale rules to digital assets and increasing reporting requirements.
Critics argue the tax could harm the U.S. crypto mining industry's competitiveness, with some lawmakers and industry figures voicing strong opposition.
The administration estimates the tax could generate almost $10 billion next year and over $42 billion over the next decade.
The proposal faces significant political hurdles, with new revenue measures needing to originate in the Republican-controlled U.S. House of Representatives.