Michaela
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U.S. Senators Cynthia Lummis and Bernie Moreno have urged Treasury Secretary Scott Bessent to swiftly revise a key tax policy definition that they argue is obstructing how American companies manage digital assets.
In a letter dated May 12, Senators Lummis and Moreno urged Bessent to revise the current interpretation of “adjusted financial statement income” under existing U.S. law. They argued that the Treasury Department holds the power to modify the definition in a manner that would ease the tax burden on digital asset companies and called on Bessent to make use of that authority.
The senators put forward the adjustment as a potential revision to a tax policy included in the Inflation Reduction Act.
“Our edge in digital finance is at risk if U.S. companies are taxed more than foreign competitors,” Senator Lummis wrote in a post on X, where she also shared the letter.
The proposed changes will likely ease the tax burden on companies with investments in digital assets.
“We respectfully urge Treasury to act swiftly. By issuing interim guidance and ultimately adjusting the final rule, Treasury can prevent a harmful and unintended tax policy from taking hold – one that undermines fairness, distorts markets, and penalizes U.S. companies for adopting innovative financial strategies,” the letter stated.
Enacted in 2022 and taking effect in 2023, the Inflation Reduction Act introduced a 15% minimum corporate tax targeting large U.S. companies. The provision applies to firms that report an average annual income exceeding $1 billion over a three-year period.
This minimum tax—calculated using a company’s financial statement income rather than taxable income—has raised concerns among digital asset firms, who argue it could significantly increase their tax liabilities due to the way crypto holdings are reported on balance sheets.
Senator Lummis’ latest push for tax policy reforms comes on the heels of the Senate’s razor-thin vote to stall the GENIUS Act. The bill, which Lummis co-sponsored, fell short by a single vote in a 49-48 decision, halting momentum on legislation aimed at advancing innovation and regulatory clarity in the digital economy.
A Senate motion to advance consideration of the GENIUS Act stalled on May 8, after Democratic lawmakers raised objections tied to former President Donald Trump’s growing alignment with the cryptocurrency sector.
Read More
- Senate Forms Crypto Subcommittee with Cynthia Lummis as Chair
- Pro-Crypto Senator Bernie Moreno Joins Senate Banking Committee
- Senate Advances GENIUS Act to Regulate Stablecoins Under New Rules
Michaela has no crypto positions and does not hold any crypto assets. This article is provided for informational purposes only and should not be construed as financial advice. The Shib Magazine and The Shib Daily are the official media and publications of the Shiba Inu cryptocurrency project. Readers are encouraged to conduct their own research and consult with a qualified financial adviser before making any investment decisions.
