U.S. Senators Call for Relaxing Tax Threshold for Corporate Digital Assets

Senators Cynthia Lummis and Bernie Moreno have called on the U.S. Treasury to impose a tax on digital asset holding companies.
In a letter released on the 12th, the two senators called on Treasury Secretary Scott Bessent to amend the tax law's definition to reduce the burden on taxpayers.
The bill also called for the amendment of the definition to be in favor of digital asset companies. This is an attempt to adjust certain provisions of the Inflation Reduction Act of 2022.
The bill aims to reduce the tax burden on digital asset companies. On the 13th, Congressman Lummis said through X that "if American companies pay higher taxes than their foreign competitors, it will be difficult for them to compete in the digital finance sector."
"This definition would make the U.S. less competitive in the digital asset space," the two senators said. Adjusting the definition would allow for tax benefits for U.S. corporations that invest in digital assets.
Known as one of the chamber’s most vocal advocates of digital assets, Moreno is currently backed by the crypto industry’s PAC, which has pledged about $40 million to help fund his 2024 election.
He was sworn in as a senator in January 2019. The Inflation Reduction Act, which took effect in 2023, includes a minimum 15% tax on companies that make more than $1 billion in revenue for three consecutive years.
The unrealized gains and losses on cryptocurrencies that arise in this case could be subject to taxation, and Lummis and Moreno argued that the Treasury Department needs to act quickly.