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🇺🇸 SENATORS URGE TREASURY TO RETHINK TAX ON UNREALIZED CRYPTO GAINS
Senators Cynthia Lummis (R-WY) and Bernie Moreno (R-OH) are calling on the U.S. Treasury to exempt unrealized cryptocurrency gains from a tax rule they argue unfairly penalizes American firms and stifles innovation.
In a letter sent Tuesday to Treasury Secretary Scott Bessent, the senators criticized how the 2022 Corporate Alternative Minimum Tax (CAMT), when combined with new FASB accounting rules, may result in companies owing taxes on crypto assets they haven’t sold. They claim this approach leaves U.S. businesses at a competitive disadvantage globally.
“Our edge in digital finance is at risk if U.S. companies are taxed more than foreign competitors,” Lummis tweeted, sharing the letter on X.
🔍 Background: What’s the Issue?
The CAMT, enacted under the Inflation Reduction Act, imposes a 15% minimum tax on corporations with $1 billion+ in average annual earnings, based on adjusted financial statement income (AFSI)—not traditional taxable income.
In December 2023, the Financial Accounting Standards Board (FASB) adopted ASU 2023-08, requiring companies to use mark-to-market (fair value) accounting for crypto assets. This means firms must report unrealized gains from unsold crypto on financial statements.
Now, under CAMT rules, these unrealized gains could be treated as taxable income, even though the companies haven’t liquidated the assets.
“Neither Congress nor FASB planned this outcome,” the senators wrote. “It’s the unintended result of basing tax liability on decisions by a private organization… not principles of taxation.”
⚠️ Potential Fallout
Lummis and Moreno warned this tax interpretation could:
- Force companies to sell crypto assets just to cover tax bills.
- Discourage innovation and crypto adoption in the U.S.
- Give foreign competitors an edge, as many follow different accounting standards.
They urged the Treasury to:
- Exclude unrealized crypto gains from CAMT calculations.
- Issue interim guidance immediately, before long-term damage is done.
Political and Regulatory Context
This challenge follows recent moves by President Trump’s administration to roll back Biden-era crypto regulations:
- In April, Trump signed a law repealing the controversial DeFi broker rule.
- In March, the Senate overturned the IRS requirement that decentralized finance (DeFi) protocols report user activity like banks.
Senator Lummis, a longtime crypto advocate, has led several legislative efforts including:
- The Lummis-Gillibrand Responsible Financial Innovation Act (2022).
- The BITCOIN Act (2025), reintroduced in March, to codify Trump’s executive order on establishing a national Bitcoin reserve.
🔮 What’s Next?
While the Treasury has yet to respond publicly, the pressure is mounting. The senators stressed the urgency, writing:
“Failure to provide this clarity… will disincentivize entities from maintaining large holdings of digital assets.”
If the current policy stands, the U.S. risks losing ground in the global race for digital finance leadership. Lummis and Moreno said they are willing to work directly with Treasury officials to resolve the issue.
📌 The battle over how crypto is taxed—especially unrealized gains—could shape the future of digital asset adoption in the U.S.
@ Newshounds News™
Source: Decrypt
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South Korea Makes Crypto a Key Election Battleground
As South Korea gears up for its June 3 presidential election, the Democratic Party has launched a Digital Asset Committee to centralize crypto policymaking under the president’s office. The move signals crypto’s rise as a major political and economic issue.
🔹 Key Points:
- New Digital Asset Committee formed on May 13 to shape national crypto policy.
- Focus areas: regulatory reform, stablecoins, exchange laws, and centralized oversight.
- The committee is drafting the “Stage 2 Bill” to modernize outdated digital asset laws.
🔹 Stablecoins in Spotlight:
- Won-pegged stablecoins are a priority, but debate continues over licensing vs. registration.
- Bank of Korea (BOK) demands final authority over KRW-linked stablecoins to protect monetary policy.
🔹 Political Stakes:
- Lee Jae-myung (Democratic Party) supports crypto innovation and a won-linked stablecoin.
- Kim Moon-soo (opposition) supports crypto adoption through public fund investment and legal clarity.
- With 16M+ South Koreans using crypto, digital assets have become a top campaign issue.
👉 Crypto is no longer niche in Korea—it’s a vote-winner.
@ Newshounds News™
Source: Coinpedia
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