US senators have called on the Treasury Department to revise tax policies for crypto assets, claiming that current taxes put American companies at a disadvantage.
Crypto Tax Regulations
Republican Senator Cynthia Lummis has urged the Treasury Department to revise tax regulations concerning crypto assets. Lummis argued that U.S. crypto finance companies face higher taxes compared to their foreign counterparts, putting America’s competitive edge at risk.
Legal Implications and Unintended Outcomes
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 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.
Impact on Competitiveness
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. They argued that companies with large crypto holdings paying taxes on unrealized gains represents an unplanned burden. This situation may deter relevant companies from holding digital assets, potentially impacting the U.S. on the international stage in innovation and financial technology.
Discussions on changing tax policies for crypto assets in the U.S. continue, and the opinions of both the public and industry representatives will play a crucial role in the future of the digital finance sector.
