US Senators Urge Reassessment of Tax on Unrealized Crypto Gains

US Senators Cynthia Lummis and Bernie Moreno have called on the Treasury to exclude unrealized cryptocurrency gains from corporate tax calculations.

Our edge in digital finance is at risk if U.S. companies are taxed more than foreign competitors. @berniemoreno & I urged the @USTreasury to lift an unintended tax burden on U.S. digital asset companies. To lead the world in digital assets, we need a level playing field.⬇️ pic.twitter.com/V7pwAUqRc4

— Senator Cynthia Lummis (@SenLummis) May 13, 2025

In a letter to Treasury Secretary Scott Bessent, they argued that current rules disadvantage American companies.

The issue concerns the corporate alternative minimum tax (CAMT), introduced in 2022. It requires companies with revenue over $1 billion to pay 15% on profits calculated according to GAAP standards, rather than traditional tax norms.

The problem arose after the Financial Accounting Standards Board (FASB) updated its rules in December 2023: companies must now assess digital assets at market value, even if unsold. This automatically increases the tax base.

“Neither Congress nor the FASB intended this outcome. It is a side effect of tying taxes to the standards of a private organization,” the senators noted.

They warned that companies are forced to sell assets to pay taxes, while foreign competitors are free from such obligations.

Lummis and Moreno demanded the Treasury urgently issue temporary guidelines excluding unrealized gains from calculations.

“Without changes, the US will lose its leadership in digital finance,” Lummis stated.

The senator is also promoting the BITCOIN Act, which would allow the government to hold over 1 million bitcoins as part of a newly established crypto reserve.

Back in March, the US House of Representatives voted to repeal an IRS rule requiring DeFi platforms to collect and provide user data.