Is crypto mining legal in the US?

Crypto mining in the US is legal at the federal level. No federal law bans it or requires a mining licence, and the US is one of the world's biggest mining markets, as noted in is crypto mining legal. What varies is state law on power, permits and grid reliability, plus federal tax rules that apply to every miner.

Is bitcoin mining legal in the US?

Yes. Federal attention has focused on energy data rather than legality. In early 2024 the Energy Information Administration, part of the Department of Energy, launched an emergency survey of miners' electricity use. The Texas Blockchain Council and Riot Platforms sued, and under a settlement filed on March 1, 2024, the agency agreed to withdraw the survey, destroy data already collected and post a new notice allowing public comment.

For how mining itself works, see how bitcoin mining works.

What are the rules for crypto mining in Texas?

Texas welcomes miners but wants to know where they are. Senate Bill 1929, signed in 2023, added section 39.360 to the state's utility law. Mining facilities with total demand above 75 MW in the ERCOT region must register with the Public Utility Commission of Texas and report their location, ownership and electricity demand each year.

The commission adopted its rule on November 21, 2024. Existing sites had to register by February 1, 2025, and new ones must register within one working day of starting retail electric service. Failing to register is a Class A violation, with penalties of up to $25,000 per violation per day.

What is the New York mining moratorium?

Governor Kathy Hochul signed the law on November 22, 2022. For two years it barred the state from issuing new or renewed air permits to power plants that burn carbon-based fuel and supply proof-of-work mining. Mines already permitted were grandfathered, renewable-powered mining was not covered, and state agencies were told to study the environmental impact.

A 2025 Assembly bill, A5353, would have extended the moratorium and let regulators block grid connections for mining that threatens reliability or affordability. Its enacting clause was stricken in July 2025, so it did not advance. Other states have their own rules, which change often.

How is crypto mining taxed in the US?

IRS Notice 2014-21 says the fair market value of mined coins on the day you receive them is included in gross income. If mining is a trade or business and you are not an employee, net earnings are also subject to self-employment tax. The IRS says to report mining income on Schedule 1 of Form 1040 and to answer Yes to the digital asset question. Selling mined coins later can produce a capital gain or loss, as covered in how crypto mining is taxed.

Rules differ by country and change often. Check the tax authority or a qualified professional for your own situation.