Senators Cynthia Lummis and Bernie Moreno have sent a letter to the U.S. Department of Treasury proposing an adjustment to a tax regulation that could disadvantage companies holding crypto.

A new regulation requires companies to pay a minimum tax of 15% (CAMT) based on the value of assets, including unrealized gains from crypto (i.e., not sold). This means many companies could face high taxes simply for holding crypto, even if they have not realized any actual profits.

The two senators suggested that the Department of Treasury adjust the tax calculation for crypto, so that companies are not unfairly penalized. If not amended, U.S. companies may liquidate their crypto holdings, losing competitive advantage and falling behind foreign competitors.

They called for urgent action to protect innovation and fairness in the digital finance industry in the United States.