US Senators Request Crypto Tax Relief From Treasury

Republican Senators Cynthia Lummis and Bernie Moreno sent a formal request to the U.S. Treasury on May 12, 2025. They urged Secretary Scott Bessent to clarify tax treatment rules for unrealized gains in digital assets. This follows accounting standard changes. Sen. Lummis emphasizes importance of fiscal responsibility in government spending.

Lummis, an advocate for digital assets, and Moreno, supported by crypto groups, highlight fears over the Corporate Alternative Minimum Tax. The newly elected senator, Moreno, plays a significant role in ongoing crypto regulation discussions.

The tax implications could force entities to sell digital holdings, impacting liquidity. Corporations might face higher tax payments on unrealized gains if changes aren’t made swiftly, affecting their financial stability and investment strategies.

The senators argue corporations could be reluctant to maintain digital asset portfolios. This might put U.S. firms at a disadvantage compared to international competitors, potentially leading to negative repercussions in the global market.

The Financial Accounting Standards Board’s change requires firms to mark-to-market digital assets, a shift influencing tax calculations. Companies like MicroStrategy might now face unfavorable financial outcomes without intervention from legislative branches.

Lummis and Moreno call for Treasury’s guidelines to adapt existing laws akin to those for traditional securities. This request highlights concerns about potentially disincentivizing corporate digital asset investments, altering the U.S. market landscape. “The current situation might require corporations to sell assets just to pay the tax, and it would disincentivize entities from maintaining large holdings of digital assets.” — Senator Cynthia Lummis, source.