Bitcoin Mining Giant Riot Opposes Tax Regulation in the U.S.

• The crypto world is stirred as Pierre Rochard, Vice President of Research at Riot Platforms, sheds light on the proposed 30% tax on crypto mining electricity by President Biden.
• Meanwhile, the proposed tax is part of a broader regulatory agenda aimed at generating income from the booming digital asset market.
• A deeper examination of the proposal reveals complex income-generation mechanisms targeting different aspects of various crypto transactions.

Riot Platforms Vice President of Research criticized the crypto mining tax regulation proposed by US President Joe Biden.

Criticism from Riot Against President Biden’s Proposal

The crypto world is stirred as Pierre Rochard, Vice President of Research at Riot Platforms, sheds light on the proposed 30% tax on crypto mining electricity by President Biden. Rochard’s recent article questions the logic behind the tax, suggesting it is a covert attempt to suppress the booming crypto market.

The criticism from Rochard at Riot Platforms regarding the proposed 30% tax on crypto mining electricity by President Biden triggers a closer examination of the administration’s financial strategy. The budget proposal put forth by the Biden government for the next fiscal year targets regulatory measures to increase revenue by taking advantage of the booming digital asset market.

Meanwhile, Pierre Rochard’s recent statements have ignited debates around President Biden’s ambitious budget proposal. This budget proposal emphasizes a heavy tax of 30% on the electricity used by Bitcoin miners. Rochard’s analysis claims a hidden agenda behind this tax, suggesting it is a clandestine effort to suppress the growth of Bitcoin and pave the way for Central Bank Digital Currency (CBDC).

According to Rochard, even miners using renewable energy sources would not be exempt from this proposed tax, raising concerns about its fairness and fundamental motivations.

Meanwhile, the proposed tax is part of a broader regulatory agenda aimed at generating income from the booming digital asset market. The budget includes various measures, such as implementing wash trading rules, increasing information reporting requirements, and introducing a special consumption tax on crypto mining.

With potential revenue projections exceeding $10 billion by 2025 and over $42 billion over the next decade, the government expects significant gains from these regulatory interventions.

Budget Details and Revenue Projections

A deeper examination of the proposal reveals complex income-generation mechanisms targeting different aspects of various crypto transactions. Integrating wash trading rules and market valuation rules into digital asset transactions could generate substantial revenues, exceeding $1 billion and $8 billion by 2025, respectively.

Over the next decade, these measures could contribute approximately $7.3 billion and $25 billion to the national treasury, respectively. Additionally, a special consumption tax on crypto mining aims to reduce the national deficit by around $7 billion during the same period.

Focusing on wash trading rules aims to close loopholes allowing investors to exploit tax losses with rapid buyback strategies. Aligning the tax treatment of digital assets with that of traditional securities, policymakers aim to respond to the unique challenges posed by the crypto market and modernize the tax code.

However, Rochard’s criticism questions the fundamental motivations behind the proposed tax on crypto mining, challenging its impact on innovation and decentralization within the crypto ecosystem.