Crypto Events
By Pankaj K
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A growing clash between U.S. tax policy and the fast-evolving cryptocurrency sector has prompted renewed calls for reform from lawmakers in Washington.
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The senators are calling on the U.S. Treasury Department to exclude unrealized gains on digital assets from CAMT calculations.
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In a joint letter addressed to Treasury Secretary Scott Bessent, Lummis and Moreno emphasized that the current application of CAMT distorts financial reporting and penalizes…
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"Failure to provide this clarity on unrealized gains in digital assets might require corporations to sell assets just to pay the tax," the letter states.
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The CAMT framework, introduced under the Inflation Reduction Act, imposes a 15% minimum tax on corporations with an average Adjusted Financial Statement Income (AFSI) of $1…
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Adding to the complexity is a recent change in accounting standards. In late 2023, the Financial Accounting Standards Board (FASB) issued rule ASU 2023-08, which requires…
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The senators argue that this double-edged effect — combining mark-to-market accounting with the CAMT rule — could significantly inflate taxable income for crypto firms, even if…
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“Our edge in digital finance is at risk if U.S. companies are taxed more than foreign competitors,” Senator Lummis warned in a public statement.
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Lummis is also the co-sponsor of the recently reintroduced BITCOIN Act, a proposal that would allow the U.S.
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Still, despite bipartisan concern and industry lobbying, the likelihood of major crypto tax reform in the short term remains low.
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Meanwhile, companies in the crypto space continue to face mounting compliance challenges. Without immediate changes, industry leaders warn that the combination of accounting…
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Lummis and Moreno argue that the unintended consequences of current tax policy stem from relying on financial accounting standards, set by a private organization, as the basis…
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As the digital asset sector matures, lawmakers are increasingly recognizing the need for tax clarity and fairness.
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