Crypto firms failed to deliver 'promised benefits' from lawmaker-backed incentives, says nonprofit
The Tech Transparency Project, or TTP, a research initiative of the United States-based nonprofit watchdog group Campaign for Accountability, has released a report claiming crypto firms “provided little in return” for state governments offering financial incentives.
In a report released Thursday, the TTP said that many crypto firms based in certain U.S. states have “reaped special benefits” for setting up operations while not always delivering jobs, economic growth, or tax benefits for residents. According to the group, crypto lobbyists worked on behalf of firms to gain tax breaks and discounted energy prices while state governments have “faced budget shortfalls, surging energy consumption, and serious environmental damage.”
A new TTP report outlines favorable laws and tax breaks given by various state governments—stretching from Nevada and Wyoming to Kentucky—to speculative crypto projects that did not produce the promised job creation and social benefit for taxpayers. https://t.co/ZEkqyQCCa1
The research group cited policies going back to 2017 in which state governments including those of Nevada, Wyoming, Montana and Kentucky passed pro-crypto legislation to incentivize firms to set up shop. In Montana, for example, the TTP reported policymakers passed a law in 2017 that cut property taxes on data centers used to mine cryptocurrency. Mining firms moved in, only to later see residents complain “about excessive noise, waste, and power use” and call for a moratorium.
In Wyoming, where lawmakers passed bills exempting crypto firms from property taxes and there is no state income tax for residents, the TTP reported that blockchain-based payments firm Ripple offered no jobs in the state, while crypto exchange Kraken listed only
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