Biden Budget Proposes New Taxes on Crypto Mining and Trading to Raise Revenue, Curb Environmental Impact

• Proposes 30% excise tax on electricity used for crypto mining, projected to raise $7.7B over 10 years • Tax would be phased in over 3 years, starting at 10% in year 1, 20% in year 2, 30% in year 3 • Cites negative environmental impacts and increasing energy prices as justification for tax • Proposes closing "tax loophole" that allows tax loss harvesting via wash trading crypto • Predicts new "wash sale rule" would raise $26B in extra tax revenue over 10 years