US Senators Lummis, Moreno Urge Treasury on Crypto Tax

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On May 13, 2025, U.S. Senators Cynthia Lummis and Bernie Moreno sent a letter urging Treasury Secretary Scott Bessent to amend a tax provision affecting corporate digital asset holdings.

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The push by Senators Lummis and Moreno aims to prevent U.S. companies from facing competitive disadvantages due to ineffective tax clarity, potentially affecting market participation.

U.S. Senators’ Call for Tax Amendments

On May 13, 2025, Senators Cynthia Lummis and Bernie Moreno issued a call to Treasury Secretary Scott Bessent. They urged revisions to a tax affecting digital asset holdings, stemming from the Inflation Reduction Act.

Lummis and Moreno took decisive steps, highlighting that current mandates could force firms to liquidate assets. The rule affects U.S. companies’ crypto holdings, addressing the need for competitive tax environments.

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.

Implications for Market Stability

The potential tax burden on U.S. corporations’ digital asset reserves could lead to involuntary asset liquidations. This could pose negative implications for market stability and discourage holding substantial crypto reserves.

Financially, this may lead to increased sell pressure and reduced liquidity. Politically, it fuels the ongoing debate for a rational crypto policy. Socially, it underscores the market’s demand for regulatory clarity.

Future Prospects and Corporate Strategies

Sectors reliant on significant digital asset reserves may reassess their strategies. Businesses are likely to reconsider crypto asset allocations, anticipating regulatory updates from the Treasury.

The outcome of these actions could encourage regulatory discourse. Historical policy changes have prompted market shifts, which may occur if corporate sell-offs are required for tax compliance. Clear regulations are key to fostering crypto market confidence and stability.

Disclaimer: The content on The CCPress is provided for informational purposes only and should not be considered financial or investment advice. Cryptocurrency investments carry inherent risks. Please consult a qualified financial advisor before making any investment decisions.