U.S. lawmakers call for reforms to corporate digital asset tax policies

Source: Cointelegraph Original text: “US lawmakers call for reform of corporate digital asset tax policies”

Two U.S. senators are urging Treasury Secretary Scott Bessent to “exercise [department] powers” to amend a provision affecting the tax treatment of corporate holdings of digital assets.

In a letter dated May 12, 2025, Senator Cynthia Lummis and Bernie Moreno suggested that Bessent be authorized to change the definition of “adjusted financial statement income” under existing U.S. law to reduce the taxes paid by digital asset companies. The proposed adjustment is seen as a way to amend a provision in the Inflation Reduction Act that was signed into law in 2022.

Cynthia stated in her X post on May 13: “If U.S. companies face higher taxes than foreign competitors, our advantage in the digital finance sector will be at risk.”

According to the two senators, the proposed amendment will provide relief for “companies investing in digital assets.” Cynthia has been one of the most outspoken advocates for digital assets in Congress, while Bernie will take office in January 2025, after a crypto-backed political action committee invested about $40 million in his 2024 Senate campaign.

The “Inflation Reduction Act” came into effect in 2023, imposing a 15% minimum tax on companies that report profits exceeding $1 billion for three consecutive years. The measure appears to include unrealized crypto gains and losses, prompting Cynthia and Bernie to call on the Treasury Department to “take swift action.”

The call from two senators comes as Senate members are expected to vote again on the “Guiding and Establishing the U.S. Stablecoin National Innovation Act” (referred to as the GENIUS Act), which aims to regulate payment stablecoins in the U.S. A motion for review on May 8 failed to advance in the Senate due to opposition from Democratic lawmakers against Trump’s ties to the crypto industry.

Cynthia, one of the co-sponsors of the bill, stated that she will continue to support the regulation of digital assets. The Senate may hold another vote in a few days.

Related recommendations: The Democratic Party of Korea establishes a “Digital Asset Committee”