Recently, cryptocurrency miners in the United States formed a new group named Digital Power Network (DPN) to ensure that Washington acknowledges their concerns, as they face numerous difficulties in their industry. This represents a significant step taken by the cryptocurrency miners, and it includes the participation of major mining companies.
The group was established by the Chamber of Digital Commerce’s Mining Initiative, and their objective is to advocate for cryptocurrency mining with the assistance of Texas lawmaker Pete Sessions. They aim to propose a rule in Congress that emphasizes the importance of supporting the way cryptocurrencies are created, specifically through proof-of-work.
DPN has garnered support from 11 companies, including Agro, BitDigital, BitFarms, Coinmint, Cipher Mining, DigitHost, Hive, Marathon, Riot, Sustainable Bitcoin Protocol, and Terawulf. Together, these companies account for over 50% of the mining power in the United States. Their primary goal is to influence the government regarding the regulations and taxes that impact the cryptocurrency mining industry.
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Their objective is crucial, as the proposed laws present numerous challenges to cryptocurrency mining. The Environmental Protection Agency intends to monitor their energy usage and propose a tax on electricity consumption, which directly affects cryptocurrency mining and its associated costs.
In a recent report by Todayq News on May 3, 2023, the Biden administration introduced a tax on cryptocurrency mining known as the Digital Asset Mining Energy (DAME) excise tax. This tax amounts to 30% of the electricity costs incurred in mining. The tax’s purpose is to hold crypto companies accountable for their environmental impact, as they have not fully covered the costs they impose on the environment and society, including pollution, higher energy prices, and increased greenhouse gas emissions.
To persuade the government to address the challenges faced by these groups, they will collaborate with the Digital Energy Council, which is also established by members of the Chamber of Commerce. Together, they will work towards gaining government support for proposals related to monitoring and taxation.