The United States government is back in the spotlight due to its renewed focus on the cryptocurrency mining industry. President Joe Biden has announced intentions to reintroduce a tax proposal that could significantly impact the entire sector. Leaders and supporters in the industry, including crypto-friendly Senator Cynthia Lummis, have expressed concerns about this proposal re-emerging.

Senator Lummis shared her thoughts, highlighting the White House's optimistic outlook on crypto assets in their 2025 budget. However, she cautioned against the proposed 30% punitive tax on digital asset mining, stating that it could severely harm the industry's presence in America.

The contentious revenue proposal from the US Treasury for 2025 gained attention after Pierre Rochard, Riot Platforms’ VP of Research, pointed out the White House's positive stance on Bitcoin, predicting its value reaching $250k by 2035. This revelation sparked conversations within the crypto community about the US government's position on Bitcoin.

The 2025 budget proposal aims to generate more than $10 billion from digital assets, including the reintroduction of a 30% tax on crypto mining initially proposed in the 2024 Budget. This tax would be phased in gradually over three years, starting with a 10% tax in the first year, increasing to 20% in the second year, and then reaching 30% thereafter.

Critics of the proposal, like Perianne Boring, CEO of the Chamber of Digital Commerce, argue that Bitcoin mining enhances energy security and believe the proposed tax could hinder innovation by favoring specific players in the industry.

Similarly, the Digital Power Network has labeled the tax as "punitive" and "misguided," targeting an industry primarily powered by renewable energy. They view this tax proposal as regressive.

The concerns deepen as even miners using renewable energy sources might face the 30% excise tax on electricity costs under the new regulations. This move has met significant resistance from the crypto community, who perceive it as another effort by the US government to enforce restrictive measures on the industry.