Crypto Events

Story: U.S. Senators Demand Crypto Tax Fix to Protect American Firms

By Steven Anderson

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Two U.S. senators are calling on the Department of the Treasury to revise a tax policy they say is unfairly burdening American cryptocurrency companies.

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The lawmakers argue that recent changes to how companies must report their digital asset holdings under federal tax rules could discourage investment in the U.S. crypto sector.

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At the heart of the issue is the Corporate Alternative Minimum Tax (CAMT), introduced as part of the Inflation Reduction Act of 2022.

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Specifically, the Financial Accounting Standards Board (FASB) introduced ASU 2023-08, a rule that requires companies to report digital assets like Bitcoin at their fair market…

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Under CAMT, these unrealized gains can trigger real tax liabilities—even if the assets haven’t been sold.

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Senators Lummis and Moreno warn that this policy could discourage companies from holding crypto long-term.

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“The application of mark-to-market accounting to digital assets in CAMT calculations creates an uneven playing field,” the senators wrote.

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The letter calls on the Treasury to remove digital asset-related unrealized gains and losses from the CAMT formula or provide an exemption for crypto holdings altogether.

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This latest advocacy effort is part of a broader campaign led by Senator Lummis, who has been a vocal proponent of clear and fair crypto regulations.

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So far, the Treasury Department has not responded publicly to the senators’ request. However, the issue is gaining traction within the crypto community and financial industry, as…

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Many industry leaders agree that the current approach fails to reflect the unique characteristics of digital assets, particularly their high volatility and long-term investment…

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As the Treasury considers its options, pressure continues to mount for a clearer, more equitable approach to digital asset taxation.

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