Hidden Tax Provision in White House Crypto Report Could Transform Bitcoin Mining

A largely overlooked section in the White House’s newly released 168-page crypto report may have significant implications for bitcoin miners—potentially reshaping how mining income is taxed and opening the door to broader institutional and mainstream adoption, according to BitFuFu CEO Leo Lu.

A Quiet Revolution in Mining Taxation

Released last week by the White House’s Working Group on Digital Asset Markets, the report lays out sweeping recommendations aimed at modernizing crypto regulation and ushering in what it calls a “golden age of crypto.” The group, led by Treasury Secretary Scott Bessent and SEC Chair Paul Atkins, called on Congress to advance key legislation, including the Digital Asset Market Clarity Act and the GENIUS Act, while also pressing for urgent reforms in how crypto assets are taxed.

Amid its broader proposals, the report includes a brief but potentially game-changing call for clarity on the timing of income recognition from crypto mining and staking. Under current IRS guidance, bitcoin mining rewards are taxed at their fair market value the moment they’re mined. That means miners are liable for income tax regardless of whether they hold or sell the assets immediately.

In contrast, other extracted commodities like gold are taxed at the point of sale, not when they’re dug out of the ground. BitFuFu’s Lu argues that aligning bitcoin’s tax treatment with gold would not only be more consistent, but could also eliminate what amounts to double taxation—first at the point of mining, then again when the bitcoin is eventually sold for a profit.

A Turning Point for Bitcoin’s Perception

Lu believes that such a shift would have far-reaching implications beyond the mining industry. By treating bitcoin as a commodity with taxation triggered only at sale, the U.S. could simplify reporting requirements, reduce compliance burdens, and reinforce the narrative that bitcoin is a store of value rather than a speculative asset.

He sees this subtle policy adjustment as part of a broader trend—one that positions bitcoin for more widespread financial integration. As banks begin extending credit to digital asset businesses and institutions explore holding bitcoin as part of their treasuries, tax treatment becomes a defining factor in adoption.

According to Lu, if bitcoin were integrated into mainstream income categories and taxed accordingly, it would accelerate its path toward becoming an everyday financial instrument—perhaps even a commonly used currency.

Legislative Momentum Builds in Congress

Several bills already in play aim to address this issue. Among them is H.R. 8149, introduced in 2024, which proposes deferring taxes on staking and mining rewards until the assets are sold. Another bill, the Responsible Financial Innovation Act, recommends similar deferrals for smaller, de minimis amounts.

The White House report echoes these initiatives, urging Congress to consider a comprehensive approach that includes not only the timing of income inclusion but also how rewards are categorized—ordinary income or capital gains—and how those classifications affect future tax treatment when assets are sold.

Although the report stops short of proposing detailed rules, it encourages lawmakers to weigh the implications across all digital asset validation methods and ensure consistent, fair application across various reward types.

BitFuFu Shrugs Off Tariff Fears

While some U.S. mining firms have raised concerns about President Trump’s recent tariffs—fearing increased equipment costs and supply chain challenges—BitFuFu remains unfazed. Lu believes U.S. miners can absorb the impact by leveraging domestic access to low-cost and renewable energy sources.

The Singapore-based mining firm has been rapidly expanding its footprint in the United States, with partnerships and operations in states like Texas, Oklahoma, and Colorado. Lu argues that strategic positioning in these regions allows BitFuFu to maintain strong margins and scale operations, despite any potential cost increases from tariffs.

Currently ranked as the 13th largest public bitcoin miner by market cap, BitFuFu is valued at approximately $570 million. In its latest production update, the firm reported mining 467 BTC in July—a 43% increase in self-mining from the previous month—and achieving record hashrates of 38.6 EH/s and power capacity of 752 MW.

Lu sees the White House report as a key signal of regulatory progress, and believes the industry is entering a new phase of maturity. For bitcoin miners, a buried tax change could be the spark that ignites the next wave of institutional confidence and growth.