Robert F. Kennedy Jr., a Democratic presidential candidate, recently took to Twitter to voice his opinions on cryptocurrency regulation. He criticized the Biden Administration’s renewed call to propose a 30 percent tax on crypto-mining, calling it a “bad idea.”
Kennedy believes that cryptocurrencies, led by bitcoin, are a major innovation engine. It would be a mistake for the US government to stifle the industry and drive innovation elsewhere, he tweeted on Wednesday afternoon.
White House Proposes Digital Asset Mining Energy Excise Tax
The White House’s Council of Economic Advisers published a blog post on Tuesday calling for the Digital Asset Mining Energy excise tax, or DAME. Under this proposal, firms would be subjected to a tax equal to 30 percent of the cost of the electricity used for mining. The tax would be phased in gradually over a period of three years at a rate of 10 percent a year, to reach the target 30% rate by the end of 2026.
The council argued that the electricity used in crypto-mining was similar to what is used to power all of the country’s home computers or residential lighting. However, Kennedy disagrees with this proposal.
Kennedy Calls Out Environmental Argument
Kennedy stated that energy use is a concern but argued that mining uses the same amount as video games, and “no one is calling for a ban on those.” He believes that the environmental argument is a selective pretext to suppress anything that threatens elite power structures.
Kennedy Blames FDIC and SEC for Bank Failures
In a separate tweet, Kennedy blamed the Federal Deposit Insurance Corporation and Securities and Exchange Commission’s “war on crypto” for the collapse of tech-focused banks, such as Silicon Valley Bank, Signature Bank, and Silvergate Bank. These banks began to fail in March.
In conclusion, Kennedy believes that the proposed tax on crypto-mining is a bad idea and would negatively impact the industry’s growth. He also thinks that the environmental argument is a pretext to suppress innovation.