WASHINGTON – Today, U.S. Senator Tommy Tuberville (R-AL) questioned the Honorable Rostin Behnam, Chairman of Commodity Futures Trading Commission (CFTC), during a Senate Agriculture, Nutrition, and Forestry (AG) Committee hearing. Senator Tuberville called for a cryptocurrency regulatory framework that encourages innovation, and he pressed Chairman Behnam for clarity on the tax treatment inconsistencies Americans face when investing in cryptocurrencies versus other assets.
Excerpts from Senator Tuberville’s remarks can be found below or on YouTube or Rumble.
TUBERVILLE: “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?”
BEHNAM: “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: “Well, please do. You know, if you buy stock, you don’t pay tax on it until you sell it.”
BEHNAM: “Correct.”
TUBERVILLE: “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. 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, you know, when you can sit down and really think about it and talk to your people.”
BEHNAM: “I’d be happy to.”
TUBERVILLE: “Thank you.
Thank you, Mr. Chairman.”
Senator Tommy Tuberville represents Alabama in the United States Senate and is a member of the Senate Armed Services, Agriculture, Veterans’ Affairs, and HELP Committees.
###
