US Senators Urge Treasury to Address Crypto Tax Burden on Unrealized Gains

Senators Cynthia Lummis and Bernie Moreno have called on the US Treasury to rectify an unintended tax burden stemming from the corporate alternative minimum tax (CAMT). The provision, enacted under President Biden’s Inflation Reduction Act, imposes a 15% levy on corporate profits—including unrealized gains—which could disadvantage American digital asset firms against foreign competitors.

In a letter to Treasury Secretary Janet Yellen, the lawmakers warned that the current policy risks undermining US competitiveness in the emerging digital finance sector. The CAMT’s broad application to cryptocurrency holdings creates unique compliance challenges for blockchain businesses, where asset volatility often produces paper gains without liquid proceeds.

The bipartisan push reflects growing recognition of crypto’s strategic importance. "Our edge in digital finance is at risk if US companies face disproportionate tax burdens," Senator Lummis stated. The Treasury now faces pressure to issue clarifying guidance before the 2024 tax filing season.