Two US senators, Cynthia Lummis and Bernie Moreno, have recently urged Treasury Secretary Scott Bessent to utilize the department's authority to amend a provision related to taxes on corporate holdings of digital assets. In a letter dated May 12, the senators proposed changing the definition of "adjusted financial statement income" under existing US law to potentially lower the tax burden on digital asset companies. This adjustment was suggested as a means to alter a provision of the Inflation Reduction Act, which was signed into law in 2022.

Senator Lummis emphasized the importance of ensuring that US companies in the digital finance space are not disadvantaged by being taxed more than their foreign competitors. The proposed modification, according to the senators, aims to provide relief to corporations investing in digital assets. Lummis, known for her advocacy for digital assets in Congress, has been vocal about the need for fair taxation in the crypto space. On the other hand, Senator Moreno, who assumed office in January, received substantial support from crypto-backed political action committees during his 2024 Senate race.

The Inflation Reduction Act, effective as of 2023, introduces a 15% minimum tax on companies reporting over $1 billion in profits for three consecutive years. This measure could potentially encompass unrealized crypto gains and losses, prompting Lummis and Moreno to call for prompt action from the Treasury Department to address the issue.

In parallel to these developments, the Senate is gearing up for a potential reevaluation of the Guiding and Establishing National Innovation for US Stablecoins (GENIUS) Act. This legislation is designed to regulate payment stablecoins in the US. A previous attempt to bring the bill for consideration faced setbacks on May 8 when Democratic lawmakers raised concerns about former President Donald Trump's connections to the crypto industry.

Senator Lummis, who is a co-sponsor of the GENIUS Act, reiterated her commitment to supporting digital asset regulation. The Senate is anticipated to revisit the bill for another vote in the near future.

The ongoing discussions and legislative actions underscore the evolving regulatory landscape surrounding digital assets and stablecoins in the United States. The outcome of these initiatives could have significant implications for the taxation and oversight of cryptocurrencies in the country.

Source: https://cointelegraph.com/news/us-senators-change-crypto-taxes?utm_source=rss_feed&utm_medium=rss&utm_campaign=rss_partner_inbound