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Senators Demand Crypto Tax Overhaul—Before Wall Street Cashes In

Senators Demand Crypto Tax Overhaul—Before Wall Street Cashes In

Author:
CoinTurk
Published:
2025-05-14 21:14:01
8
1

US Senators Urge Treasury to Adjust Crypto Tax Policies to Maintain Global Competitiveness

US lawmakers push Treasury to rewrite crypto tax rules, warning America risks losing its edge. ’Innovation shouldn’t be taxed into oblivion while hedge funds lobby for loopholes,’ argues bipartisan group.

Key changes demanded: Clearer guidance for miners, simplified reporting for retail traders, and—of course—carveouts for institutional players. Because nothing screams ’decentralization’ like VPs getting preferential treatment.

Closing thought: If history repeats, expect reforms just in time for BlackRock’s crypto ETF to go live.

Crypto Tax Regulation

Senators Cynthia Lummis and Bernie Moreno from Ohio emphasized the newly enacted Inflation Reduction Act in their letter to Treasury Secretary Scott Bessent. This legislation imposes a 15% tax liability under the Corporate Alternative Minimum Tax (CAMT) for certain companies.

Lummis highlighted that companies in the innovative financial sector must pay taxes on unrealized gains in their crypto assets, posing a serious disadvantage. She noted that this tax approach challenges the position of U.S. companies in the global crypto asset market.

“If American companies pay more taxes than foreign competitors, our dominance in crypto finance is at risk. Bernie Moreno and I called on the Treasury to lift the unintended tax burden on American crypto asset companies. We must ensure a fair competitive environment to lead in crypto assets.” — Cynthia Lummis

According to the senators, current regulations result in outcomes contrary to the intentions of both the U.S. Congress and the Financial Accounting Standards Board (FASB). They argued that companies with large crypto holdings paying taxes on unrealized gains represents an unplanned burden.

This tax situation may deter relevant companies from holding digital assets. Consequently, Lummis and Moreno urged the Treasury to use existing powers to reduce the tax burden or exclude unrealized gains from tax calculations.

“Companies must now pay taxes on unrealized gains in their crypto assets’ value. Neither Congress nor the FASB foresaw this outcome; it’s an unintended result of a private body focused on financial statement accounting.” — Lummis and Moreno’s letter to the Treasury Secretary

The tax application and potential revisions appear to directly affect the crypto asset sector. The current disadvantage faced by U.S. companies may reduce some institutions’ propensity to hold digital assets, potentially impacting the U.S. on the international stage in innovation and financial technology.

Public and industry opinions vary on this matter, and any potential regulatory request from the Treasury is being closely monitored. There are plans for Congress and financial authorities to comprehensively address the issue in the coming period.

In the U.S., tax regulations on digital assets are considered a factor that can determine companies’ competitiveness in the global market. The steps to be taken in line with the opinions of the government and industry representatives are likely to influence the future of the digital finance sector.

You can follow our news on Telegram, Facebook, Twitter & Coinmarketcap Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

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