A recent 168-page White House report on digital asset policy has included a tax recommendation that could have far-reaching effects on the bitcoin mining industry, according to BitFuFu CEO Leo Lu.
Key tax change for miners
The report, released by the White House’s Working Group on Digital Asset Markets, urges the IRS and Treasury to clarify when bitcoin mining and staking income should be recognized for tax purposes.
Currently, miners are taxed on the fair market value of bitcoin at the time it is mined, rather than when it is later sold.
Lu explained the significance of this distinction:
“If miners can report income from bitcoin’s point of sale in the future, their reported income numbers will greatly change.”
This change would align bitcoin with other extracted commodities such as gold, which are taxed when sold, not when mined.
It could also eliminate what many in the industry view as double taxation—miners currently pay income tax when the bitcoin is mined and capital gains tax when sold if the price has increased.
Strategic bitcoin reserve
The report also confirmed that President Trump’s proposed strategic bitcoin reserve will be managed by the Treasury and funded through forfeited digital assets, though full details have not yet been released.
The potential tax change is seen as a step toward integrating bitcoin into mainstream financial reporting and usage categories.
Legislation and industry reception
Several bills in Congress, including H.R. 8149 and the Responsible Financial Innovation Act, are aiming to defer tax on mining and staking rewards until the assets are sold.
The White House report suggests Congress should carefully consider how such rules might apply to bitcoin and other digital asset rewards.
U.S. miners resilient despite tariffs
Despite concerns regarding tariffs on mining equipment, Lu believes U.S. miners can remain competitive by leveraging affordable and increasingly renewable energy sources.
BitFuFu, ranked as the 13th largest public bitcoin miner, recently reported mining 467 BTC in July and achieving a record 38.6 EH/s hashrate.
