14 hours ago
Are outdated tax laws crippling Bitcoin mining? Miners say it's time for change
Are outdated tax laws crippling Bitcoin mining? Miners say it's time for change originally appeared on TheStreet.
In the evolving landscape of Bitcoin mining, one regulatory issue has quietly become a flashpoint for operators: the way mining income is taxed. Unlike traditional commodity producers, Bitcoin miners are taxed the moment they generate new coins—even before any sale takes place.
'If you're mining gold, you don't pay tax until you sell it,' said Beau Turner, CEO of Abundant Mines, in a recent conversation with TheStreet Roundtable's Alp Gasimov. 'But for Bitcoin miners, the IRS treats mined coins as regular income immediately, creating unnecessary sell pressure.'
That distinction could soon be challenged. Turner points to the Financial Accounting Standards Board (FASB)'s recent decision to allow companies like Michael Saylor's Strategy to use fair value accounting for Bitcoin as a sign of shifting tides. He sees a similar path for the mining sector—if regulators are willing to view mined Bitcoin the same way they view mined commodities.
Currently, Bitcoin miners face a two-part tax burden: first, regular income tax when coins are mined, and second, capital gains tax if the price increases before sale. This dual structure pressures many miners to sell prematurely—just to cover tax obligations—contributing to volatility and undermining long-term holding strategies.
'If you've got a tax bill but you haven't sold your coin yet, you might have to sell it just to pay the tax,' Turner explained. 'That wouldn't happen if we were treated like other commodity producers.'
The implication is clear: align Bitcoin taxation with commodity norms, and miners could hold longer, reducing market supply and stabilizing price dynamics.
When asked why this wasn't standard from the outset, Turner pointed to the slow-moving nature of regulatory bodies. Even small changes often require significant industry momentum and political backing. 'We're not asking for special treatment,' he emphasized. 'Just to be treated like any other commodity business.'
That framing could gain traction, especially as mining gains visibility in political circles. Turner noted the involvement of 'the Trump brothers' in the mining sector as a possible catalyst for policy momentum, suggesting that bipartisan awareness is growing.
Are outdated tax laws crippling Bitcoin mining? Miners say it's time for change first appeared on TheStreet on Jun 19, 2025
This story was originally reported by TheStreet on Jun 19, 2025, where it first appeared.
