Bitcoin Miners Seek Tax Relief as US Risks Falling Behind Globally

Michael Saylor, the executive chairman of MicroStrategy, has recently called for the elimination of double taxation on Bitcoin miners. He argues that the current tax system, which taxes miners twice—once when they receive block rewards as ordinary income and again when they sell those rewards, triggering capital gains tax—is unfair and discourages participation in securing blockchain networks. This double taxation puts an unnecessary burden on miners and stakers, who are the foundation of the blockchain ecosystem. Saylor believes that if America is to become the world's Bitcoin superpower, it must end these unfair taxes on Bitcoin miners.

Senator Cynthia Lummis has also joined the call to end double taxation on crypto miners and stakers. She argues that this system is unfair and puts the U.S. at risk of falling behind countries where mining isn’t taxed at all. Lummis and Saylor argue that this system is unfair and discourages participation in securing blockchain networks. It also puts the U.S. at risk of falling behind countries where mining isn’t taxed at all. “It’s time to fix this and make America the global crypto leader,” Lummis said.

Other governments are already attempting to recruit cryptocurrency miners with beneficial tax schemes. Mining is tax-free in El Salvador, and Bitcoin is considered legal currency. The UAE offers 0% tax on cryptocurrency mining and no personal income tax, especially in free zones. Even other countries are in favor of Bitcoin and crypto adoption. Portugal used to offer tax-free crypto gains, and although the rules are shifting, it remains relatively friendly. Georgia offers no crypto tax for individuals and cheap electricity. Germany offers tax exemptions on cryptocurrencies held for over a year, while Switzerland’s Zug region is renowned for its crypto-friendly regulations.

As such, nations draw more cryptocurrency companies, America might get left behind. Senator Lummis and Michael Saylor are calling for tax reform to stimulate innovation and maintain America’s leadership of the crypto revolution. They argue that crypto mining or staking is the core ethos of blockchain technology and if miners and stakeholders are not provided a favorable regulation they might leave the country.

Michael Saylor, a vocal advocate for Bitcoin, recently stated that to become the world’s Bitcoin superpower, “we must end unfair taxes on BTC miners.” With mining at the heart of Bitcoin’s decentralization and security, many see disproportionate tax treatment as a barrier. Saylor’s call highlights a critical shift: instead of penalizing miners, the U.S. could incentivize their growth through tax reform.

Lower taxes on mining would likely draw both domestic and international investment. Companies invest where costs are favorable, and cutting tax burdens could spark new data centers, mining farms, and ancillary services. Bitcoin miners often use excess or renewable energy. Tax incentives could promote grid stability and cleaner energy solutions, aligning with broader climate goals. This symbiosis between mining and infrastructure could spur green innovation.

China long dominated mining. Reducing U.S. tax burdens could reverse that trend, enabling America to lead not just technologically but geopolitically in blockchain and decentralized finance. Policymakers can explore options such as tax credits for miner investments in energy efficiency, lowered or renewed depreciation schedules for mining equipment, and pilot zones offering transitional tax relief to attract new operations. By adopting targeted reforms, the U.S. could set a positive precedent in crypto regulation—balancing innovation with responsibility.