Two U.S. senators urge the Treasury Department to clarify encryption tax rules to avoid "unfair taxation".

GateUser-6433627c · 2025-05-14T02:16:37+00:00

Two Republican senators urged the Treasury Department to clarify Crypto Assets tax rules to avoid unfair taxation, arguing that new regulations could lead to inequitable tax burdens and stifle investment in the United States. They emphasized the importance of providing a clear explanation of the tax implications on digital asset unrealized gains, to prevent companies from being forced to sell assets to pay taxes, undermining fairness and punishing firms that innovate financial strategies. They are willing to respond promptly to cryptocurrency-related tax policies.

GateUser-6433627c

2025-05-14 02:16:37

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[Two U.S. Senators Urge Treasury Department to Clarify Crypto Tax Rules to Avoid ‘Unfair Taxation’] Republican Senators Cynthia Lummis and Bernie Moreno, who support cryptocurrency, sent a letter to Treasury Secretary Scott Bessen on Tuesday, saying that the alternative minimum tax on businesses and the new accounting standard will “create an unfair tax on unrealized earnings,” which “may ultimately discourage U.S. investment.” “Without a clear explanation of the unrealised proceeds of digital assets, companies may have to sell their assets to pay taxes, which will discourage them from holding large amounts of digital assets,” the two lawmakers said. They urged the Treasury Department to “act quickly” to “prevent a harmful and unintended tax policy from taking effect” and avoid “undermining fairness, distorting markets, and penalizing U.S. companies that employ innovative financial strategies.”

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