Senator Lummis Urges Treasury to Eliminate Tax Burden on Bitcoin & Crypto Firms

Airdrop Is Live CaryptosHeadlines Media Has Launched Its Native Token CHT. Airdrop Is Live For Everyone, Claim Instant 5000 CHT Tokens Worth Of $50 USDT. Join the Airdrop at the official website, CryptosHeadlinesToken.com Senator Lummis and Bernie Moreno urge the Treasury to eliminate tax on unrealized Bitcoin and crypto gains to protect U.S. innovation.The Corporate Alternative Minimum Tax (CAMT) creates an unfair tax disadvantage for U.S. digital asset companies compared to foreign competitors.Lummis stresses the need for swift Treasury action to ensure U.S. dominance in digital finance, preventing harmful tax policies from taking hold.Senator Cynthia Lummis is calling on the U.S. Treasury to remove what she describes as an unintended tax burden that threatens the competitiveness of American Bitcoin and crypto companies under the Corporate Alternative Minimum Tax (CAMT).CAMT Rule Could Harm U.S. Bitcoin and Crypto FirmsIn a recent statement on X, Senator Lummis said America’s digital finance edge is at risk if domestic crypto companies are taxed more than foreign competitors. Together with Senator Bernie Moreno, she has called upon the Treasury to move with urgency to fix a tax provision they claim punishes U.S. companies for just holding virtual assets like Bitcoin.The CAMT, imposed through the 2022 Inflation Reduction Act, applies a 15% minimum tax to large corporations earning at least $1 billion of adjusted financial statement income (AFSI). The problem, according to Lummis and Moreno, lies in how AFSI is calculated.Following an update from the Financial Accounting Standards Board (FASB), companies must now apply fair value—or mark-to-market—accounting to digital assets. This means any increase in the value of held crypto, even if unrealized, adds to a company’s AFSI and can trigger higher CAMT liability.Foreign Firms Gain Advantage Over U.S. Crypto CompaniesLummis and Moreno argue this rule creates a major imbalance. Foreign companies aren’t subject to the same accounting treatment for digital assets, giving them an unfair advantage. This discrepancy could force U.S.-based crypto firms to sell digital assets like Bitcoin just to cover tax bills on gains they haven’t realized.The senators are asking the Treasury to use its regulatory authority under 26 U.S.C. § 56A to fix the issue. One solution would be to exclude unrealized crypto gains and losses from the AFSI calculation entirely. Another would be a narrower fix that specifically disregards changes caused by the FASB’s 2023-08 rule on digital asset reporting.Lummis and Moreno warn that without such changes, the tax structure will disincentivize American firms from holding large amounts of Bitcoin and other digital assets, potentially pushing innovation and capital offshore.Lawmakers Call for Immediate Treasury ActionThe letter to the Treasury references previous action by the IRS—specifically Notice 2023-20—which provided timely relief to the insurance industry facing similar problems under CAMT. The senators argue that crypto companies deserve the same protection.By eliminating the unfair tax on unrealized digital asset gains, they believe the U.S. can ensure a fair and competitive environment for Bitcoin and crypto firms to thrive. Senator Lummis made clear that she is committed to ensuring the U.S. remains a leader in digital assets and is ready to work with Treasury officials to resolve the issue.Source link