- The White House is concerned that the recent Bitcoin price surge is putting significant strain on the US power grid, linking increased crypto mining to higher energy usage
- The Biden administration previously proposed a tax targeting crypto miners’ energy usage in an effort to make them pay for costs imposed on others
- With Bitcoin reaching its highest price since 2021, driving increased mining activity and electricity consumption, the White House remains wary of crypto mining’s environmental impact despite experts disputing claims about mining’s energy burden
The White House has expressed concern that the recent Bitcoin price surge is putting a “significant strain” on the US power grid. This perception follows previous efforts by the Biden administration to tax crypto mining operations.
White House Links Crypto Mining to Energy Usage
According to Fox Business reporter Charles Gasparino, the White House believes the increased mining required to meet growing Bitcoin demand is negatively impacting the power grid. While crypto experts say these concerns are overblown, the administration appears poised to increase regulation of the industry.
The White House proposed a Digital Asset Mining Energy (DAME) excise tax in May 2023 targeting crypto miners’ energy usage. The stated goal was making miners pay for costs imposed on others.
Surging Bitcoin Price Drives Mining Power Demand
Bitcoin reached $57,000 this week, its highest price since 2021. This rally is driving increased mining activity and electricity consumption.
The White House first expressed unease about crypto mining’s energy appetite when unveiling the proposed DAME tax. Despite experts disputing claims about mining’s energy burden, the administration remains unmoved.
Conclusion
The Biden White House is wary of crypto mining’s environmental impact as Bitcoin prices climb. While industry leaders downplay these concerns, additional regulation seems likely as the government links mining operations to energy usage and sustainability issues.
