Michael Saylor, Executive Chairman of MicroStrategy, and Senator Cynthia Lummis are advocating for an end to double taxation on Bitcoin mining, which may enhance the U.S.'s competitiveness in the crypto market.
Taxation in Bitcoin Mining
Michael Saylor and Senator Lummis are advocating for reforms in U.S. tax policy concerning Bitcoin mining. The proposed changes aim to eliminate the existing double taxation structure faced by miners under current laws. The proponents assert these reforms could elevate the U.S. to a global leader in the cryptocurrency industry.
Impact of Ending Double Tax on Miners' Profits
Cutting double taxes on Bitcoin mining could enhance profitability and attract institutional investment. Removing such barriers may also lead to improved miner income due to reduced operational costs. Experts suggest a more competitive environment could encourage broader investments in the U.S. crypto market.
Prospects for the U.S. Crypto Market
The current tax situation discourages miners who must pay taxes on both their Bitcoin rewards and subsequent sales. This taxation has negatively impacted miner profits, evidenced by a drop in Bitcoin miner income to $34 million in June 2025. Cryptocurrency stakeholders, including miners, generally support the proposal, anticipating more favorable economic conditions. 'For years, miners and stakers have been taxed TWICE. Once when they receive block rewards, and again when they sell it. It’s time to stop this unfair tax treatment and ensure America is the world's Bitcoin and Crypto Superpower,' states Senator Lummis.
Michael Saylor and Senator Lummis' efforts to reform Bitcoin mining taxation policy highlight ongoing challenges for U.S. cryptocurrency stakeholders. Addressing these tax issues could make the U.S. a more attractive venue for cryptocurrency businesses, encouraging growth and innovation in the sector.
