The United States is making strides on crypto regulation, and it’s home to the largest number of Bitcoin and Ethereum nodes in the world.
In her Expert Take column, Selva Ozelli, an international tax attorney and CPA, covers the intersection between emerging technologies and sustainability, and provides the latest developments around taxes, AML/CFT regulations and legal issues affecting digital assets and blockchain.
It’s fair to say that the United States is one of the most crypto-friendly countries in the world. It ranks No. 1 in the quantity of Bitcoin and Ethereum nodes, and regulators have taken a particular interest in the subject. In September, the administration of President Joe Biden released a series of federal reports addressing how crypto might be regulated in the year ahead.
As part of those reports, the Office of Science and Technology indicated that the government “has a responsibility” to “protect” communities from the negative impacts of pollution and climate change caused by cryptocurrencies.
President Biden’s Inflation Reduction Act is America’s largest-ever investment in greenhouse gas emission reduction, clean energy and climate resilience. It sets aside about $370 billion for incentives such as green energy tax credits intended to spark the large-scale development of clean energy technologies and further electrify the digitization of the United States.
Related: Here is why Germany is ranked the most crypto-friendly country
According to one report, applying blockchain technology to electricity microgrids can potentially promote “the techno-socio-economic innovations for the restructuring of the sustainable energy supply chain” by enabling distributed energy resource coordination.
Ethereum, the most widely used blockchain, recently switched to the more eco-friendly proof-of-state (PoS) consensus algorithm through its Merge event. The upgrade improved the network’s sustainability and security and took steps toward increasing its scalability, and the network now offers an attractive yield on staking.
A September 2022 report from the Crypto Carbon Ratings Institute reveals that Ethereum’s move from proof-of-work to proof-of-stake has reduced the amount of electricity the Ethereum
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