Mobile Courant

On July 10, 2024, U.S. Senator Tommy Tuberville (R-AL) engaged in a discussion with Rostin Behnam, Chairman of the Commodity Futures Trading Commission (CFTC), during a Senate Agriculture, Nutrition, and Forestry Committee hearing. Senator Tuberville emphasized the necessity for a regulatory framework for cryptocurrency that fosters innovation and sought clarification on the tax treatment discrepancies faced by Americans investing in cryptocurrencies compared to other assets.

Senator Tuberville stated, "Thank you. And I want your thoughts on how mined crypto assets should be taxed. Take Bitcoin for instance. The IRS is all over people that are mining bitcoin. If you grow corn, you don’t pay tax on it until you sell it. But Bitcoin, if you mine it, even before you sell it, you have to pay taxes on it. Do you think that’s fair? Have you thought about this?"

Chairman Behnam responded, "Senator, I actually I have not thought about it until now. Principally speaking and based on the way you articulate the analogy, you know, it doesn’t sound fair or there’s not a clear sort of analogous policy around it. But thinking through some of the issues around mining and the efforts that are required through energy and otherwise to mine tokens, you know, perhaps there’s a policy reason that the IRS is looking at through their lens, but I’m happy to look at it more deeply and have a conversation with you. But I otherwise don’t focus too much on tax code."

Tuberville further pressed the issue: "Well, please do. You know, if you buy stock, you don’t pay tax on it until you sell it." Behnam confirmed this with "Correct." Tuberville continued: "If you buy gold, you don’t pay tax on it until you sell it. But if you mine Bitcoin or any kind of crypto, you know, the IRS wants their money now. Whether you're gonna make or lose money at the end of the day. And I think if we’re going to encourage people to get involved in crypto we need to address this issue pretty quickly because a lot of people are being really harassed by the IRS and they shouldn’t be."

Tuberville concluded by saying: "This should be like any other entity where they have the opportunity to invest. And when they make profit they pay tax on it at that time. So I appreciate your thoughts on it when you can sit down and really think about it and talk to your people." To which Behnam replied: "I’d be happy to."

The exchange highlights ongoing concerns regarding cryptocurrency taxation policies.