According to Cointelegraph, two U.S. senators have urged Treasury Secretary Scott Bessent to use his authority to amend a tax provision affecting corporate holdings of digital assets. In a letter dated May 12, Senators Cynthia Lummis and Bernie Moreno proposed that Bessent could redefine 'adjusted financial statement income' under current U.S. law to potentially reduce the tax burden on digital asset companies. This adjustment aims to modify a provision of the Inflation Reduction Act, enacted in 2022.
Senator Lummis expressed her concern about the competitive advantage of digital finance in the U.S., stating in a post on May 13 on X that domestic companies could face higher taxes compared to their foreign counterparts. The senators believe that the proposed change would provide relief to corporations investing in digital assets. Lummis has been a vocal advocate for digital assets in Congress, while Moreno, who took office in January, received significant support from cryptocurrency-backed political action committees during his campaign for the 2024 Senate.
The Inflation Reduction Act, in effect since 2023, imposes a minimum tax of 15% on companies reporting more than $1 billion in profits for three consecutive years. This includes unrealized crypto gains and losses, prompting Lummis and Moreno to urge the Treasury Department to act promptly.
The call from the senators coincides with the expected consideration by the Senate of another vote on the National Stablecoin Innovation and Establishment Guidance Act, or GENIUS Act. This legislation seeks to regulate payment stablecoins in the U.S. However, a motion for its consideration stalled in the Senate on May 8, partly due to Democratic opposition linked to U.S. President Donald Trump's connections to the crypto industry. Lummis, a co-sponsor of the bill, remains committed to supporting digital asset regulation, and the Senate could review the vote soon.
