TLDR
Senators Lummis and Moreno propose exempting unrealized crypto gains from Corporate Alternative Minimum Tax (CAMT)
FASB’s 2023 accounting rule requires fair value reporting of digital assets, creating potential tax burden on unrealized gains
Lawmakers warn this could force companies to liquidate holdings or move operations overseas
Missouri passed bill to eliminate all capital gains taxes, including on crypto assets
Trump administration has taken several pro-crypto actions, including repealing the IRS DeFi broker rule
U.S. Senators Cynthia Lummis (R-WY) and Bernie Moreno (R-OH) have introduced a proposal urging the Treasury Department to exempt unrealized cryptocurrency gains from tax calculations under the Corporate Alternative Minimum Tax (CAMT). Their effort aims to address what they see as an unfair tax burden created by the combination of recent accounting rules and existing tax law.
The CAMT, established by the 2022 Inflation Reduction Act under the Biden administration, imposes a 15% minimum tax on corporations with an average adjusted financial statement income of at least $1 billion over three years. This tax was designed to ensure highly profitable corporations pay their fair share of taxes.
However, the Financial Accounting Standards Board (FASB) complicated matters when it released Accounting Standards Update 2023-08 in late 2023. This update requires companies to report digital assets at fair market value on income statements under Generally Accepted Accounting Principles (GAAP).
The senators argue that the combination of these two rules creates an unintended consequence. Companies must now mark digital assets to market value at the end of each quarter, potentially triggering tax liability on gains they haven’t actually realized through sales.
Business Impact and Competitive Concerns
In their letter to Treasury Secretary Scott Bessent, Lummis and Moreno warned that the current policy could force U.S. companies to liquidate their cryptocurrency holdings simply to meet tax obligations. This would create an artificial market pressure unrelated to business strategy or investment goals.
The lawmakers also highlighted that this places U.S. firms at a disadvantage compared to foreign competitors. International accounting standards don’t mandate the same fair value accounting for crypto assets, creating an uneven playing field.
“Our edge in digital finance is at risk if U.S. companies are taxed more than foreign competitors,” Lummis stated on social media platform X when sharing the proposal.
Our edge in digital finance is at risk if U.S. companies are taxed more than foreign competitors. @berniemoreno & I urged the @USTreasury to lift an unintended tax burden on U.S. digital asset companies. To lead the world in digital assets, we need a level playing field.
pic.twitter.com/V7pwAUqRc4
— Senator Cynthia Lummis (@SenLummis) May 13, 2025
The senators emphasized that neither Congress nor the FASB planned this outcome. They described it as “the unintended result of basing tax liability on decisions by a private organization… not principles of taxation.”
State-Level Developments
While federal lawmakers push for changes, individual states are taking their own approaches to cryptocurrency taxation. Missouri recently passed House Bill 594, which would eliminate state capital gains tax on all asset classes, including cryptocurrencies like Bitcoin and XRP.
The Missouri bill awaits the governor’s signature. If signed, Missouri would become the first state to completely remove capital gains taxes on all assets, including digital currencies.
Meanwhile, prediction markets show mixed expectations about broader federal tax changes. A market on Kalshi gives only a 12% chance that a second Trump administration will eliminate capital gains taxes on crypto in 2025, while Polymarket shows somewhat higher but still minority odds.
Donald Trump has suggested replacing income taxes with tariffs as a long-term reform goal, though no formal policy has been introduced at the federal level regarding crypto taxation.
The senators’ proposal comes amid a series of pro-crypto actions under the Trump administration. In March, the Senate passed a resolution to overturn the IRS’s “DeFi broker rule,” which would have required decentralized finance protocols to report user activity similar to traditional financial intermediaries.
President Trump signed this resolution into law in April, marking the first crypto-related legislation enacted by any U.S. president. In March, Senator Lummis also reintroduced the BITCOIN Act, which would authorize the Treasury to purchase up to one million BTC over five years.
Lummis and Moreno are urging Treasury to act quickly, requesting interim guidance before finalizing rules. They warned that failure to provide clarity “will disincentivize entities from maintaining large holdings of digital assets.”
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