New York City officials plan to impose a cryptocurrency mining tax
Date: 2025-10-06 Author: Gabriel Deangelo Categories: IN WORLD
New York City has proposed an initiative aimed at regulating the energy consumption of cryptocurrency mining farms. Senator Liz Krueger and Representative Anna Kelles introduced the bill, noting that high electricity consumption leads to higher bills for residents and small businesses, requiring government intervention.
S8518 proposes establishing progressive tax rates. Companies using between 2.25 and 5 million kWh would pay $0.02 per kWh. For consumption of up to 10 million kWh, the rate would be $0.03, for consumption up to 20 million kWh, $0.04, and for consumption over 20 million kWh, $0.05. Funds raised from the new tax would be used to support low- and moderate-income households by ensuring access to more affordable energy.
According to Senator Krueger, this approach will allow mining companies to offset the impact on rates for city residents, making a fair contribution to social support for the most vulnerable segments of the population. At the same time, companies operating on renewable energy sources will be able to avoid additional burdens, stimulating investment in green technologies and sustainable development of the sector.
Researchers estimate that large mining centers in the state add approximately $79 million to individual bills and $165 million to small business expenses annually, increasing the economic burden and spurring political debate. The explanatory memorandum also notes that the largest energy consumers today are data centers for AI and high-performance computing, but the bill focuses exclusively on cryptocurrency mining, demonstrating the government's special attention to this segment.
New York is traditionally known for its strict regulation of digital assets, which has previously forced a number of crypto companies to relocate operations to more favorable regions of the United States. At the same time, other states, such as Wisconsin, are considering initiatives to deregulate the crypto sector, creating a contrast in approaches to industry development.
Thus, Bill S8518 not only imposes a tax on the energy consumption of mining companies but also incentivizes environmentally friendly technologies while supporting socially vulnerable groups. State authorities seek to balance the development of the crypto sector with public interests by regulating the industry's impact on the energy market and the regional economy.
