Cynthia Lummis urged the U.S. Treasury to reconsider taxes for corporate cryptocurrency owners.

According to a letter sent to US Treasury Secretary Scott Bessent by (Scott Bessent) Cynthia Lummis and Republican Senator from Ohio Bernie Moreno (Bernie Moreno), the Treasury should review the application of the Corporate Alternative Minimum Tax (CAMT) to companies owning crypto assets. In August 2022, under the administration of former President Joe Biden, the Inflation Reduction Act was passed, under which CAMT is 15% for corporations whose average income according to the (AFSI)'s adjusted financial statements for a three-year period is at least $1 billion.

After the introduction of the Corporate Alternative Minimum Tax, the Financial Accounting Standards Board (FASB) explained that companies holding cryptocurrencies on their balance sheets will need to report their assets based on current, rather than original, market prices. If the crypto assets held by companies have appreciated, this creates a tax burden for them based on unrealized gains. This means that corporations are forced to pay taxes on potential profits that they have not actually realized, as noted in a letter from senators.

Lawmakers fear that American corporations will be forced to sell digital assets just to meet their tax obligations. This will hinder the development of innovation in the United States - American companies will be at a disadvantage compared to foreign competitors, whose tax standards do not require the valuation of digital assets at current market value.

“We do not ask for special treatment for large cryptocurrency holders. We advocate for fairness and economic common sense. The Ministry of Finance should exclude all unrealized profits and losses from corporate digital assets from taxation. Otherwise, we risk conceding leadership in the crypto industry,” the letter to the U.S. Department of the Treasury states.

Recently, Cynthia Lummis urged Congress to establish standards for the use of meme coins by officials and government employees, including U.S. President Donald Trump.