Republican Senators Cynthia Lummis (R-WY) and Bernie Moreno (R-OH) are urging the U.S. Treasury Department to provide clear guidance on how digital assets should be treated under the Corporate Alternative Minimum Tax (CAMT). They warn that without clarification, current interpretations could unfairly penalize crypto-holding firms and discourage U.S.-based blockchain investment.
In a letter sent Tuesday to Treasury Secretary Scott Bessent, the lawmakers highlighted concerns that CAMT—introduced under the Inflation Reduction Act—combined with new accounting standards could trigger taxation on unrealized gains from crypto assets. The CAMT imposes a 15% minimum tax on corporations with more than $1 billion in average financial statement income.
Under new rules from the Financial Accounting Standards Board (FASB), companies must now report digital assets at fair market value. Lummis and Moreno argue this creates a mismatch—potentially forcing companies to pay taxes on gains they haven’t realized or sold.
“Failure to provide this clarity on unrealized gains in digital assets might require corporations to sell assets just to pay the tax, and it would disincentivize entities from maintaining large holdings of digital assets,” the letter stated.
They urged Treasury to exclude such unrealized gains from CAMT calculations to ensure fairness and regulatory alignment with international norms.
CAMT Poses Tax Risk for Crypto-Holding Corporations
The CAMT was initially designed to target large corporations under the Inflation Reduction Act passed in August 2022. Few expected it to affect firms holding large crypto reserves—until FASB updated its guidance on digital asset accounting.
The new rules—welcomed by companies like MicroStrategy—require firms to mark crypto to market on financial statements. While this update eliminated impairment accounting, it also created a new challenge: companies may now owe taxes on paper gains under the CAMT.
This could lead to a scenario where firms must liquidate crypto assets to meet tax obligations—even if no profits were realized. The combination of CAMT and FASB’s valuation standard risks creating unintended financial pressure on companies invested in digital assets.
Lawmakers Push for Treasury Action on Crypto Tax Relief
Senators Lummis and Moreno are asking the Treasury to issue interim guidance that would exempt unrealized crypto gains from CAMT calculations. They argue the current policy framework disincentivizes innovation and penalizes firms that are adopting forward-looking financial strategies.
“We respectfully urge the Treasury to act swiftly,” the senators wrote.
“By issuing interim guidance and ultimately adjusting the final rule, Treasury can prevent a harmful and unintended tax policy from taking hold — one that undermines fairness, distorts markets, and penalizes U.S. companies for adopting innovative financial strategies.”
Their call reflects growing bipartisan concern that outdated or misaligned tax rules could undermine the nation’s competitiveness in the global digital economy.
Quick Facts
- Senators Cynthia Lummis and Bernie Moreno sent a letter to the Treasury.
- They seek guidance on how crypto fits into CAMT rules.
- CAMT imposes a 15% tax on financial statement income.
- FASB now requires crypto to be reported at market value.
- Lawmakers say this could lead to unfair taxation of paper gains.
