US senators Cynthia Lummis and Bernie Moreno have come up with a new plan to relieve companies from the crypto tax. Their proposal aims at the Corporate Alternative Minimum Tax (CAMT) that requires firms to pay taxes on the unrealized crypto gains because of a new accounting rule.
CAMT, which was enacted as part of the 2022 Inflation Reduction Act, requires corporations with revenues of more than $1 billion a year to pay at least 15% in taxes.
A new rule by the Financial Accounting Standards Board (FASB) now requires companies to mark digital assets such as Bitcoin and Ethereum to fair market value – which means that gains are taxed even if the assets are not sold.
Lummis and Moreno argue this creates unfair tax bills and discourages investment in US-based crypto firms. They’ve urged the Treasury to use its authority to exclude unrealized gains and losses from CAMT calculations. “This would ensure fair treatment and support innovation in digital finance,” their proposal states.
Their concerns echo those of the crypto industry, which fears that heavy tax burdens could drive businesses abroad. Notably, the IRS gave similar relief to the insurance sector in 2023 under CAMT rules.
Meanwhile, Missouri just passed House Bill 594 to eliminate state capital gains tax—including on crypto. If signed by the governor, Missouri would become the first state to completely remove capital gains tax on all assets
