Senators question crypto tax rules – Will policy reform come in time?

• Senators urge the treasury to exclude unrealized crypto profits from CAMT calculations.
• CAMT and new accounting rules of risk that crypto companies at sea.

The growing gap between the crypto innovation and the federal tax policy has caused urgent requirements of the reform of the pro-crito legislators.

Senators Cynthia Lummis and Bernie Moreno oppose the corporate alternative minimum bidding tax (CAMT). They warn that this could impose huge tax obligations on the US crypto company. These companies could face taxes, although they did not realize any profits.

In the letter of Finance Minister Scott Bessnt, senators urged the re -evaluation of the impact of CAMT on digital assets. They claim that current politicians disrupt financial reporting.

This approach unfairly penalizes companies to accepting new technologies.

The legislators stated that they noticed that the legislators

“Failure to provide this clarity on unrealized profits in digital assets may require corporations to sell assets to pay tax and discourage entities to maintain large holding of digital assets.”

What is the new tax proposal?

The CAMT rule imposes 15% minimum tax with an average AFSI of $ 1 billion or more for corporations. This threshold is calculated within three years. It could have a big impact on the crypto of the company that holds digital assets on their balance sheets.

Therefore lummis further added,

“Our edge in digital financing is endangered if American companies are taxed more than foreign competitors.

She added

“To lead the world in digital assets, we need straight conditions.”

As expected, the Senator Lummis’ Crypto Tax seeks to protect companies from taxes from unrealized profits by excluding these fluctuations from the calculation of modified income from the financial statements (AFSI) within CAMT.

This step responds directly to the Council Rule for the financial accounting standards of ASU 2023-08, which requires companies to record digital assets with real market value.

Challenges before us

Although this accounting shift was in combination with the CAMT framework, although he originally appreciated for improving transparency

The legislators claim that this could lead to disproportionate tax burden, which eventually discourages investment in digital assets and blockchain innovation at sea.

Remarks that senators have added,

“This result did not plan neither Congress nor FASB. It is an unintended tax liability for a private organization decision … not the principles of taxation.”

Despite the ongoing political chatting, however, the market sentiment suggests limited optimism for wider tax reform.

Polymarket data They showed a 1% chance that President Donald Trump would remove capital taxes on crypto until June.

This was followed by the recent Senator Lummis Re -establishment the Bitcoins Act, which aims to establish a national Bitcoin [BTC]]Book and seize the Ministry of Finance to accumulate up to a million BTC in five years.