- Lummis advocates exemption for unrealized crypto gains in U.S.
- Proposal targets paper gains under the CAMT.
- Aims to enhance U.S. competitiveness in digital assets.
Senators Cynthia Lummis and Bernie Moreno have called on the U.S. Treasury to exempt unrealized cryptocurrency gains from taxation, potentially impacting U.S. digital asset companies.
Crypto tax reform impacts U.S. companies’ competitiveness in the volatile digital asset sector, possibly driving investments offshore if unresolved.
Senators Cynthia Lummis and Bernie Moreno have urged the U.S. Treasury to exclude unrealized crypto gains from tax calculations under the Corporate Alternative Minimum Tax (CAMT). Lummis has been a prominent advocate of crypto regulations, sponsoring various reforms. Moreno, newly elected, has supported the proposal, underlining bipartisan alignment in pushing for crypto tax reform.
Senator Cynthia Lummis, Wyoming, “The current tax regime risks pushing digital asset firms abroad and hindering U.S. competitiveness.”
Both Senators emphasize that taxing unrealized gains imposes a competitive disadvantage on U.S. companies compared to foreign rivals. Businesses holding substantial crypto assets, like Bitcoin (BTC) and Ethereum (ETH), are affected by this tax regime, prompting calls for change.
If passed, the proposal might increase U.S. corporate participation in the crypto market. The initiative could lead to greater institutional engagement in digital assets, marking a shift in the regulatory landscape.
The proposal reflects growing recognition of the crypto economy’s role. Historical precedents show similar tax clarifications bolstered business confidence and market participation. If adopted, the reform may drive positive shifts in the financial and regulatory environment concerning digital assets.
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