Digital Power Network Submits Congressional Statement on Ending Double Taxation of Bitcoin Mining Rewards

FOR IMMEDIATE RELEASE

WASHINGTON, D.C. — Today, the Digital Power Network (DPN), the nation’s leading coalition of Bitcoin miners and digital infrastructure developers, submitted a formal statement for the record to the House Ways and Means Subcommittee on Oversight as part of its hearing, "Making America the Crypto Capital of the World: Ensuring Digital Asset Policy Built for the 21st Century."

DPN’s statement highlights a critical tax policy issue facing the U.S. digital asset sector: the double taxation of Bitcoin mining rewards. Under current IRS guidance, miners are taxed first when they receive newly issued Bitcoin and again when that Bitcoin is later sold, creating a burdensome and unjust double tax that discourages domestic innovation.

“Bitcoin miners are essential to the security and function of the digital asset ecosystem, yet current tax policy treats them differently from every other form of property creation in the economy,” said Hailey Miller, Director of Government Relations and Public Policy at DPN. “This outdated approach puts U.S. miners at a competitive disadvantage and threatens to push this strategic industry overseas.”

In its submission, DPN expresses strong support for legislative language previously introduced in H.R. 8149 (118th Congress), included in the filing as Exhibit One. The language would clarify that digital asset rewards obtained through blockchain consensus mechanisms, specifically proof-of-work mining, are not taxable upon receipt, but only upon their sale or disposition.

“This commonsense fix reflects both economic reality and legal precedent,” said Miller. “Ending the double taxation of Bitcoin mining rewards is a necessary step to modernize the tax code, reduce compliance burdens, and ensure the United States remains the global leader in digital innovation.”

Read DPN’s full statement here.