The Joe Biden administration has proposed a 30% tax on the electricity used for cryptocurrency mining operations in its budget for 2025.

The computers that secure cryptocurrencies such as Bitcoin consume large amounts of power. Known as mining, this process involves intense computation and, as a result, consumes significant electricity. This not only has implications for climate change, but can also contribute to rising energy prices.

According to analyses by tech nonprofit WattTime and energy consultancy Wood Mackenzie, Texas will see a nearly 5% increase in electricity prices by mid-2023 due to industrial-scale cryptocurrency mining.

With many other cryptocurrency mining operations across the US, President Joe Biden’s proposed budget for the fiscal year 2025 includes a proposal to impose a 30% excise tax – taxes levied on goods like fuel – on digital asset mining.

Within the US Department of the Treasury document – General explanations of the administration’s fiscal year 2025 revenue...