Republican Senators are pushing the US Treasury to make crypto tax laws more competitive with other countries. They argue that the current system puts American companies at a disadvantage.
Unfair Tax Burden?
Senator Cynthia Lummis and Senator Bernie Moreno say that a new tax, part of the Inflation Reduction Act, unfairly hits US crypto companies. This tax, called the corporate alternative minimum tax (CAMT), forces companies to pay taxes on the potential gains of their crypto holdings, even if they haven’t sold the crypto. They claim this was an unintended consequence of the law.
Leveling the Playing Field
The Senators argue that this extra tax burden discourages US companies from holding large amounts of cryptocurrency, hurting their competitiveness against foreign firms that don’t face the same rules. They’ve written to Treasury Secretary Scott Bessent, urging him to use his authority to fix the problem. This could involve either lowering the tax or excluding unrealized gains from the calculation. Their main goal is to create a fairer playing field for US companies in the global crypto market.