According to Wu, US President Biden proposed a series of cryptocurrency-related tax and regulatory measures in his 2025 budget proposal, which are expected to generate nearly $10 billion in revenue next year and more than $42 billion in the next decade. The proposal includes a suggestion to impose a consumption tax on Bitcoin mining activities. According to the proposal, companies that use computing resources to mine digital assets will be required to pay a consumption tax equal to 30% of their electricity costs, effective after December 31, 2024, and introduced in three stages: 10% in the first year, 20% in the second year, and 30% in the third year. The proposal points out that this budget saves billions of dollars by closing tax loopholes that benefit the rich and large companies, including loopholes targeting wealthy cryptocurrency investors.
