US Senators Urge Treasury to Amend Corporate Digital Asset Tax Rules

Senators Cynthia Lummis and Bernie Moreno have jointly called on Treasury Secretary Scott Bessent to revise the tax code regarding corporate digital asset holdings. Their May 12th letter proposes modifying the definition of “adjusted financial statement income” under current law to alleviate the tax burden on digital asset companies. This adjustment, they argue, would address a provision within the 2022 Inflation Reduction Act.

Senator Lummis highlighted the competitive disadvantage faced by US companies under the current tax structure, emphasizing the risk to American leadership in digital finance. The proposed change aims to provide significant tax relief for corporations with digital asset investments.

The Inflation Reduction Act mandates a 15% minimum tax on corporations exceeding $1 billion in profits over three years. The senators contend that the current interpretation unfairly includes unrealized crypto gains, prompting their urgent plea for Treasury Department action.

Dual Push for Crypto Regulation

This action comes as the Senate prepares for a revote on the GENIUS Act, aiming to regulate payment stablecoins. A previous attempt failed due to concerns regarding Donald Trump’s links to the crypto industry. Senator Lummis, a co-sponsor of the GENIUS Act, remains committed to responsible crypto regulation.

This coordinated effort underscores the ongoing debate surrounding fair and effective taxation of digital assets within the US corporate landscape and the crucial need for balanced regulatory frameworks.