Senators push for lower crypto tax burden

Unrealised crypto gains could increase corporate taxes, prompting calls for immediate change from pro-crypto lawmakers.

US senators have urged the Treasury to ease crypto tax rules for large companies under the Inflation Reduction Act.

Two US senators, Cynthia Lummis and Bernie Moreno, are urging US Treasury Secretary Scott Bessent to revise how corporate digital assets are taxed. They proposed a change to the definition of ‘adjusted financial statement income’ under the Inflation Reduction Act.

The aim is to reduce the tax burden on firms holding crypto assets.

The Act, which came into force in 2023, introduced a 15% minimum tax on companies earning over $1 billion in profits across three years. Under the current framework, unrealised crypto gains and losses may be included in taxable income.

Lawmakers argue this places US companies at a disadvantage compared to foreign competitors.

Lummis and Moreno assert that the Treasury already has the authority to act, and their proposal would offer relief to firms investing in digital assets. Both senators support crypto, with Moreno elected this year after backing from US crypto campaign groups.

The appeal comes as the Senate prepares for a second vote on the GENIUS Act, a bill aimed at regulating stablecoins. Although an earlier motion failed, Lummis has pledged ongoing support for clearer rules on digital finance.

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