Biden

Chair

Bank AI

Bitcoin

The crypto world is abuzz with debate as Pierre Rochard, VP of Research at Riot Platforms, sheds light on President Biden’s proposed 30% tax on crypto mining electricity. Rochard’s recent post challenges the Biden administration’s rationale behind the tax, alleging it is a veiled attempt to suppress the burgeoning crypto market.
So, let’s look at Pierre Rochard’s outlook over the recently proposed crypto mining tax by the Biden administration.
<h2 id="riot-exec-slams-biden-s-crypto-mining-tax-proposal">Riot Exec Slams Biden’s Crypto Mining Tax Proposal</h2>
Riot Platforms’ Rochard’s critique of President Biden’s once again proposed <a href="https://coingape.com/biden-proposes-30-climate-change-tax-bitcoin-miners/" target="_blank" rel="noopener noreferrer nofollow">30% tax</a> on crypto mining electricity sparks a deeper examination of the administration’s fiscal strategy. The Biden government’s budget proposal for the upcoming fiscal year aims to capitalize on the booming digital asset market, targeting regulatory measures to enhance revenue streams.
Meanwhile, Pierre Rochard’s recent remarks have ignited discussions surrounding President Biden’s ambitious budget proposal, which reiterated a hefty 30% tax on electricity utilized by <a href="https://coingape.com/bitcoin-miner-daily-revenue-hits-record-high-ahead-of-halving/" target="_blank" rel="noopener noreferrer nofollow">Bitcoin miners</a>. Rochard’s analysis suggests a veiled agenda behind the tax, alleging that it’s a covert attempt to stifle Bitcoin’s growth and pave the way for a <a href="https://coingape.com/glossary/central-bank-digital-currency-cbdc/" target="_blank" rel="noopener noreferrer nofollow">Central Bank Digital Currency (CBDC)</a>.
Notably, according to Rochard, even miners utilizing renewable energy sources would not be exempt from this proposed tax, raising concerns about its fairness and underlying motives.
Meanwhile, the proposed tax forms a part of <a href="https://coingape.com/bitcoin-mining-comes-under-biden-governments-radar-ahead-of-key-elections/" target="_blank" rel="noopener noreferrer nofollow">Biden’s</a> broader regulatory agenda aimed at harnessing revenue from the booming digital asset market. The budget outlines various measures, including imposing wash trading rules, enhancing information reporting requirements, and introducing an excise tax on crypto mining.
With estimates projecting potential revenues of $10 billion by 2025 and over $42 billion over the next decade, the government sees substantial gains from these regulatory interventions.
Also Read: <a href="https://coingape.com/fdic-vice-chair-urges-sec-to-define-crypto-assets-for-regulatory-clarity/" target="_blank" rel="noopener noreferrer nofollow">FDIC Vice Chair Urges SEC To Define “Crypto Assets” For Regulatory Clarity</a>
<h2 id="budget-breakdown-and-revenue-projections">Budget Breakdown and Revenue Projections</h2>
A deeper dive into the proposal reveals intricate revenue-generating mechanisms, with measures targeting different aspects of crypto transactions. Integrating digital asset transactions into wash sale rules and mark-to-market rules could yield significant revenues, projected at over $1 billion and $8 billion, respectively, by 2025.
Over the next decade, these measures could contribute $7.3 billion and $25 billion, respectively, towards the national coffers. Additionally, an excise tax on crypto mining aims to reduce the national deficit by approximately $7 billion within the same period.
The focus on wash trading rules aims to close <a rel="noopener noreferrer nofollow" href="https://www.whitehouse.gov/briefing-room/statements-releases/2024/03/11/fact-sheet-the-presidents-budget-cuts-taxes-for-working-families-and-makes-big-corporations-and-the-wealthy-pay-their-fair-share/" target="_blank">loopholes</a> allowing investors to exploit tax losses through quick buy-back strategies. By aligning the tax treatment of digital assets with traditional securities, policymakers aim to modernize the tax code and address the unique challenges posed by the <a href="https://coingape.com/glossary/cryptocurrency/" target="_blank" rel="noopener noreferrer nofollow">cryptocurrency</a> market.
However, Rochard’s critique challenges the underlying motives of the proposed <a href="https://coingape.com/glossary/crypto-mining/" target="_blank" rel="noopener noreferrer nofollow">crypto mining</a> tax, questioning its potential impact on innovation and decentralization within the crypto ecosystem.
Also Read: <a href="https://coingape.com/court-deals-major-blow-to-us-sec-on-supplemental-authority-in-crypto-case/" target="_blank" rel="noopener noreferrer nofollow">Court Deals Major Blow to US SEC on Supplemental Authority in Crypto Case</a>
The post <a href="https://coingape.com/riot-exec-explains-reality-behind-president-biden-30-crypto-mining-tax/" rel="noopener noreferrer nofollow">Riot Exec Explains Reality Behind President Biden’s 30% Crypto Mining Tax</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Riot Exec Explains Reality Behind President Biden’s 30% Crypto Mining Tax

Table of Contents

Coingape News Media

Other articles published on Mar 12, 2024

Raffle Coin (RAFF) Surges with Ethereum (ETH) as Dogecoin (DOGE) Holders Seek Gains Amidst Binanc...

17% Of American Investors Have Once Held Or Currently Hold Shiba Inu

Biden's budget proposal for FY 2025 takes aim at crypto transactions and mining

Missed Out On Bitcoin’s Big Boom? Then Consider Frog Wif Hat (FWIF), eTukTuk (TUK), and Smog (SMO...

Cardano (ADA) Builts Foundation For $1 Move, Near (NEAR) Price Explodes to Break $7, Mind-Blowing...

Solana Aims For $200 As On-Chain Metrics Touch New Highs! Here’s The Next Setup For SOL Price

Join our free newsletter for daily crypto updates!