A latest 168-page White Home report on digital asset coverage has included a tax suggestion that might have far-reaching results on the bitcoin mining business, in line with BitFuFu CEO Leo Lu.
Key tax change for miners
The report, launched by the White Home’s Working Group on Digital Asset Markets, urges the IRS and Treasury to make clear when bitcoin mining and staking revenue must be acknowledged for tax functions.
At present, miners are taxed on the honest market worth of bitcoin on the time it’s mined, somewhat than when it’s later offered.
Lu defined the importance of this distinction:
“If miners can report revenue from bitcoin’s level of sale sooner or later, their reported revenue numbers will drastically change.”
This variation would align bitcoin with different extracted commodities equivalent to gold, that are taxed when offered, not when mined.
It might additionally get rid of what many within the business view as double taxation—miners at the moment pay revenue tax when the bitcoin is mined and capital features tax when offered if the value has elevated.
Strategic bitcoin reserve
The report additionally confirmed that President Trump’s proposed strategic bitcoin reserve shall be managed by the Treasury and funded by forfeited digital belongings, although full particulars haven’t but been launched.
The potential tax change is seen as a step towards integrating bitcoin into mainstream monetary reporting and utilization classes.
Laws and business reception
A number of payments in Congress, together with H.R. 8149 and the Accountable Monetary Innovation Act, are aiming to defer tax on mining and staking rewards till the belongings are offered.
The White Home report suggests Congress ought to rigorously take into account how such guidelines would possibly apply to bitcoin and different digital asset rewards.
U.S. miners resilient regardless of tariffs
Regardless of considerations relating to tariffs on mining tools, Lu believes U.S. miners can stay aggressive by leveraging inexpensive and more and more renewable power sources.
BitFuFu, ranked because the thirteenth largest public bitcoin miner, not too long ago reported mining 467 BTC in July and attaining a document 38.6 EH/s hashrate.