Outdated tax laws unfairly burden Bitcoin miners, causing premature selling to cover tax obligations

From Yahoo Finance: 2025-06-19 18:30:00

Bitcoin miners are feeling the crunch of outdated tax laws, which tax their income as soon as new coins are generated. This creates unnecessary sell pressure, as miners must cover tax obligations. The hope is that regulators will align Bitcoin taxation with commodity norms, allowing miners to hold longer and stabilize price dynamics.

Beau Turner of Abundant Mines points to a potential shift in the tide, with the Financial Accounting Standards Board allowing fair value accounting for Bitcoin. The current dual tax burden on miners, both income tax when coins are mined and capital gains tax upon sale, leads to premature selling to cover taxes. Aligning Bitcoin taxation with commodity norms could reduce volatility.

The slow-moving nature of regulatory bodies has hindered progress in treating Bitcoin mining like other commodity businesses. With the involvement of political figures like the Trump brothers in the mining sector, bipartisan awareness is growing. Miners hope for a change in tax laws to allow them to operate more like traditional commodity producers.

Read more: Are outdated tax laws crippling Bitcoin mining? Miners say it’s time for change