US Senators Press Treasury to Revise Crypto Tax Rules on Unrealized Gains, Citing Global Competitiveness
US Senators Cynthia Lummis and Bernie Moreno are urging the Treasury Department to revise current cryptocurrency tax policies, highlighting concerns over the current taxation of unrealized gains under the Corporate Alternative Minimum Tax (CAMT)—a provision from the 2022 Inflation Reduction Act. Their May 2025 letter emphasizes that newly implemented FASB accounting standards (ASU 2023-08) require US corporations to report crypto holdings at market value, resulting in tax liabilities for price increases even without asset sales. According to the senators, this puts US digital asset firms at a competitive disadvantage globally, risks discouraging crypto asset holdings, and may force premature liquidation. They recommend the Treasury use its regulatory authority (26 U.S.C. § 56A(c)(15)) to exclude unrealized crypto gains and losses from CAMT calculations or adapt definitions under the latest standards. Without such reforms, the lawmakers warn, the US could lose its leadership in digital assets and fintech innovation. The Treasury has not yet responded. Policy changes in this area may significantly affect investment strategies, regulatory clarity, and the broader crypto trading environment in the US.
Neutral
While the senators’ proposal, if adopted, could reduce tax burdens and incentivize long-term holding of crypto assets in the US—potentially boosting market confidence and investment—it remains at the policy recommendation stage. The Treasury Department has not implemented any changes, and the outcome is uncertain. As no immediate regulatory shift or market impact has occurred, the short-term effect on cryptocurrency prices is neutral. However, traders should monitor regulatory developments, as future changes could either enhance US digital asset competitiveness or impose continued constraints. Historically, pending regulatory proposals tend to have a limited immediate effect unless accompanied by concrete legislative or executive actions.