Bitcoin Miners Furious: New Tax Bill Could Crush the Industry!

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<a href="https://jpyeur.com/btc-usd/">Bitcoin</a> Advocates Oppose New PARITY Act Over Mining Tax

Bitcoin supporters are raising concerns about a new tax bill being considered by both Democrats and Republicans. They believe the bill unfairly targets and heavily taxes Bitcoin miners, potentially making it too expensive for them to operate.

Representatives Max Miller and Steven Horsford have proposed a new bill called the PARITY Act. This legislation seeks to simplify how the U.S. government taxes digital assets like cryptocurrencies by updating the Internal Revenue Code.

Why Crypto Leaders Against the PARITY Act?

However, the proposal has instead ignited dispute within the broader cryptocurrency industry.

The main issue with the bill is how it handles various methods for verifying blockchain transactions. It proposes treating income from creating cryptocurrency as taxable income, valuing it at its fair market price when received.

Importantly, the new law lets people who use proof-of-stake networks like Ethereum and Solana delay paying taxes on their assets until they actually sell them.

Unlike some newer cryptocurrencies, Bitcoin relies on a system that demands expensive equipment and a lot of electricity to operate. Because of this, the current version of the PARITY Act doesn’t allow Bitcoin miners to delay paying taxes on their earnings.

According to Conner Brown, head of the Bitcoin Policy Institute, the current proposal still taxes Bitcoin mining twice, but offers some tax breaks for staking. Brown believes this legislation unfairly favors certain businesses over others.

The Bitcoin Policy Institute explained that the bill would create an unfair tax system: it would allow people who ‘stake’ cryptocurrency to delay paying taxes, but leave miners facing the same tax issue that everyone agreed was a problem.

The proposed law would also make it easier to use payment stablecoins – as defined by the GENIUS Act – for everyday purchases, offering more favorable tax treatment.

According to the Bitcoin Policy Institute, this rule would make it more difficult for people to use Bitcoin for small, everyday purchases. Even these small transactions could be treated as taxable events, which would add a tax burden to normal spending.

The proposed rules would exempt small payments (under $200) made with stablecoins, but not with Bitcoin, despite Bitcoin making up 60% of the entire digital asset market. This means using Bitcoin to buy something like a coffee would still be considered a taxable event, requiring capital gains calculations. The think tank argues that a similar small-payment exemption for Bitcoin is crucial for its development as a widely-used global currency, and any legislation aiming for fairness should include it.

Industry Experts Highlight Room For Improvements

Even though some Bitcoin enthusiasts disagree with the proposed changes, larger industry groups are trying to use them as a foundation for more comprehensive legal updates.

Cody Carbone, head of The Digital Chamber, expressed support for the PARITY Act, but stressed that changes are crucial to keep digital asset businesses from relocating to other countries.

We’re pleased to see a draft proposal for a bipartisan approach to taxing digital assets. Getting clear tax rules for these assets has been a top priority for us throughout this session of Congress, so we’re happy the draft is available, allowing us to start discussing it publicly.

He was pleased to see a draft available for public review, but pointed out that it needs significant revisions.

Given the current situation, Carbone explained the key changes his organization wants to see. These include only taxing profits from staking and mining when cryptocurrency is sold or transferred, raising the limit for tax-free transactions beyond just stablecoins, and ensuring that simple actions like transferring crypto between your own wallets aren’t taxed.

He also suggested making tax forms easier to understand and eliminating unnecessary reporting. Additionally, he asked for clearer rules about lending and giving away digital assets like cryptocurrency.

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2026-03-28 19:02