Two U.S. senators called for the Treasury to intervene, preventing the interpretation of the Alternative Minimum Tax (CAMT) of businesses from being punished by US companies for unrealized benefits promoted by updated accounting standards.
In a letter dated May 12, Senator Cynthia Ramis and Bernie Moreno asked the Treasury Scott Bescent to issue regulatory guidance to exclude unrealized profits on digital assets from calculations of adjusted financial statement revenue (AFSI) under CAMT.
Without such relief, the senator argued that US companies would be forced to meet their tax obligations or sell crypto to reduce their holdings, putting them at a disadvantage against foreign companies subject to different accounting standards.
CAMT and MARK-to-Market Accounting
This issue stems from the interaction of the CAMT clause of the Inflation Reduction Act with new marks to market requirements issued by the Financial Accounting Standards Board (FASB).
The accounting shift, secured after prior involvement from crypto-friendly lawmakers, was designed to reflect the treatment of fair value of crypto in corporate financial statements, but mistakenly taxed unrealized profits under CAMT for businesses that average over $1 billion at AFSI.
The senator noted that Congress never intended to tax unrealized benefits in this context, criticising its reliance on the FASB, a private organisation that focuses on financial reporting rather than tax principles.
They wrote that “neither Congress nor the FASB planned this outcome,” adding that in order to coordinate the definition of AFSI, the Ministry of Finance has clear authority under sections 56A(c)(15) and (e) of the Internal Revenue Code.
They also pointed to the 2023 IRS Notice that provides interim relief to the insurance industry as a precedent for immediate guidance and regulatory flexibility.
“If they do not provide this clarity, the company may need to sell its assets just to pay taxes,” the letter said.
Cedar Innovation Foundation Presses Senate
The letter comes amid wider complaints within the crypto industry over stagnant laws in the Senate and Congress after lawmakers opposed cryptography and ridiculous bills aimed at providing regulatory clarity.
On May 13, the Cedar Innovation Foundation, a key element of the code-focused Super PAC fairshake, issued an official statement urging the Senate to finalize the Stubcoin Act without delay.
Foundation spokesman Josh Vrust said:
“After months of negotiations and, more importantly, transformative and critical work on reforming market structures awaits bystanders, clear Senate leaders on both sides of the aisle should avoid political games and pass the final Stubcoin bill in the coming days.”
The statement warned that there would be further delays “put America’s competitiveness and consumers at risk.”
Fairshake has emerged as one of the most funded political action committees in the crypto sector. We support candidates from both parties in the 2024 and 2026 election cycles.
The Senator’s letter and Cedar’s statement highlight concerns about creating clear rules for the crypto industry to thrive safely in the United States.
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