Senators Push Treasury to Overhaul Crypto Tax Rules
The post Senators Push Treasury to Overhaul Crypto Tax Rules appeared on BitcoinEthereumNews.com.
Treasury should address cryptocurrency tax regulations, say Senators Lummis and Moreno. Current rules tax unrealized gains, hurting U.S. crypto firms. Foreign competitors face fewer tax burdens on digital assets. U.S. senators Cynthia Lummis and Bernie Moreno have written a letter to the Treasury Department demanding that it review the tax rules they allege are unfairly burdening the American cryptocurrency companies. In a letter dated May 12, 2025, senators brought out how the existing regulations disadvantage U.S firms as compared to their foreign counterparts. Addressed to the Secretary of the Treasury, the letter emphasized the necessity for fair tax policies to be implemented to contribute to the development of the emerging digital assets industry. It referred to the CMAT, or Corporate Alternative Minimum Tax, which was established by the Inflation Reduction Act of 2022, which President Biden signed into law. This is a tax that places a floor of 15% on the corporations that have adjusted financial statement income (AFSI) of over $1 billion in three consecutive years. Organisations must disclose the market value of their digital assets in accordance with the regulations laid down by the Financial Accounting Standards Board (FASB). This mark-to-market standard makes firms liable to pay taxes on monies that were not received from the sale of their assets. The senators say this levels the playing field in an unfair way since foreign companies are mostly subjected to less ardent tax obligations. Senators Sound Alarm on Crypto Rule That Could Drain Corporate Reserves Companies are required to declare cryptocurrency holdings by their market value under the new accounting standard, ASU 2023-08. When the value of a firm’s digital assets increases, higher taxes have to be paid even if the assets are not sold. But the firms have the right to deduct the losses if the value drops.…
Filed under: News - @ May 15, 2025 2:23 am