U.S. Senators Cynthia Lummis and Bernie Moreno have urged the Treasury to exempt unrealized crypto gains from a tax rule instituted during the Biden administration. This rule, part of the 2022 Corporate Alternative Minimum Tax (CAMT), could impose taxes on digital assets that firms have not sold, potentially leading to unfair disadvantages for U.S. companies compared to foreign competitors. The senators expressed concern that this convergence of tax law and updated accounting rules could discourage companies from maintaining substantial digital asset holdings. They emphasized the risk of forced asset liquidations to meet tax obligations, worsening the competitive landscape for U.S. firms. The letter highlights the unexpected impacts of basing tax liabilities on private organization decisions rather than equitable taxation principles. Lummis and Moreno advocate for quick Treasury action to clarify the rules and prevent detrimental tax policies from being implemented, asserting their willingness to collaborate directly with Treasury officials on these matters.

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