A bipartisan effort led by Senators Cynthia Lummis and Bernie Moreno aims to relieve crypto companies from what they describe as a potentially damaging tax burden stemming from recent regulatory changes.
The proposal seeks to amend how digital assets are treated under the Corporate Alternative Minimum Tax (CAMT), a 15% minimum tax targeting large corporations introduced through the 2022 Inflation Reduction Act.
The issue, according to the senators, is the requirement for companies to include unrealized gains from cryptocurrency holdings in their adjusted financial statement income (AFSI) — the basis for CAMT liability.
The push comes in response to updated guidance from the Financial Accounting Standards Board (FASB), which now requires firms to report digital assets at fair market value on income statements. While intended to promote transparency, critics argue the rule could result in tax bills based on temporary price swings rather than realized profits.
Lummis and Moreno argue that taxing unrealized crypto gains could force U.S. firms to offload digital assets or relocate overseas. Their legislative fix would carve out such unrealized gains and losses from AFSI calculations, a move they say will ensure tax policy aligns with real economic outcomes.
The senators’ proposal is part of a broader effort to modernize crypto regulation and keep the U.S. competitive in a fast-evolving financial sector. It remains to be seen how quickly Congress will act, but pressure is building to rethink outdated tax rules that don’t reflect the unique characteristics of blockchain-based assets.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over 8 years of experience covering the crypto, blockchain and fintech industries, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics.
Source: https://coindoo.com/u-s-senators-push-to-shield-crypto-firms-from-punitive-tax-rules/