Miller Value Partners CEO Challenges Legality of Bitcoin Tax
Bill Miller IV, chief investment officer at Miller Value Partners, has made headlines in the crypto community by claiming that the government has no legal authority to tax Bitcoin. In a July 2 interview with the Coin Stories podcast, Miller argued that the nature of blockchain technology nullifies the traditional role of the state in enforcing ownership rights that underpin taxation.
Miller: "Blockchain Eliminates the Need for Traditional Taxes"
According to Miller, taxes exist to protect and validate ownership rights, which are recorded and enforced through government agencies, such as in real estate or securities transactions. However, Bitcoin's blockchain automatically records and verifies ownership rights, without the need for any government intervention.
This, he argues, makes taxing Bitcoin structurally and morally unsound. “If you own real estate, it needs to be verified by the government. But Bitcoin? It’s self-verified,” he said.
Why does this matter to investors?
Miller’s comments come amid increasingly tight tax regulations on cryptocurrencies in the United States. Data from BlockPit shows that US investors could face capital gains taxes ranging from 0% to 37%, depending on the holding period and personal income level.
Notably, starting in 2025, the Internal Revenue Service (IRS) will require:
Form 1099-DA reporting from trading platforms.
Accounting by individual wallet.
Compliance complexity is a major barrier to institutional capital inflows into the Bitcoin market, Miller noted. Fund managers fear that unclear tax obligations will pose legal risks to the Bitcoin ETF products they operate.
Tax Policy Is Changing?
A wave of more crypto-friendly policies is brewing:
In Missouri, a bill is proposing a 100% income tax deduction for crypto profits, which if passed would make it the first state to completely eliminate crypto taxes.
On the prediction market Polymarket, 57% of users believe President Trump will cut capital gains taxes by the end of 2025.
Speculation surrounding Eric Trump’s proposed tax breaks for crypto has also drawn attention.
The Big Legal Question: Is Bitcoin Property or Money?
Miller’s views highlight a global legal debate. The Australian Federal Court previously ruled that Bitcoin is money, not property, which could result in a $640 million tax refund and have a major impact on how countries tax cryptocurrencies.
The difference in how Bitcoin is defined will:
Impact investors’ tax obligations.
Change how governments calculate revenue from digital assets.
Impact financial institutions’ business models and investment strategies.
Balancing innovation and public service
Critics argue that cryptocurrency tax revenue plays an important role in funding public services and maintaining economic infrastructure. For them, taxing Bitcoin is not only legitimate, but also necessary to maintain fairness in the financial system.
Meanwhile, proponents like Miller argue that decentralized technologies like blockchain open up a new era where individuals can self-verify ownership without the need for governments and therefore should not be taxed like traditional assets.
Implications for institutional adoption
The lack of legal and tax clarity has left many large financial institutions hesitant to incorporate Bitcoin into their portfolios. As the US Congress debates comprehensive crypto legislation ranging from eliminating small transaction taxes to requiring enhanced reporting, Bitcoin’s future in the traditional financial system remains uncertain.
Conclusion
Bill Miller IV’s remarks are not only a critique of current tax policy, but also a call to rethink the role of the state in the age of blockchain technology. With the law failing to keep up with innovation, the big question remains: Can Bitcoin become a global asset without government recognition? The answer will shape the future of the entire digital finance industry.