US Republican Senator Cynthia Lummis called to the Treasury Ministry to change tax regulations on crypto assets. Lummis suggested that the US crypto financial companies in the country were about to lose their competitive advantage due to their heavier tax than foreign competitors.
Crypto Money Tax Regulation
Senator Cynthia Lummis and Senator Bernie Moreno from Ohio, Treasury Minister Scott Bessent, the USA, the United States Emphasized the New Inflation Act (Inflation Reduction ACT) emphasized. With this law, it was stated that a new tax obligation was imposed on some companies within the scope of the Corporate Alternative Minimum Tax (CAMT) application.
It is stated that the fact that companies operating in the field of innovative finance have to pay taxes from the unrealized increases in the value of crypto assets they have is a serious disadvantage. Lummis pointed out that this practice has put its position in the global crypto asset market in the global crypto asset market.
“If American companies pay more taxes than their foreign competitors, our superiority in the field of crypto finance is at risk. Together with Bernie Moreno, we have called for unintentional tax burden on American crypto asset companies. We must provide a fair competitive environment to become a leader in the field of crypto assets.” – Cynthia lummis
Legal regulation and unwanted results
According to senators, the existing regulations had a result of both the US Congress and the intention of the Financial Account Standards Board (FASB). It was claimed that it is an unplanned burden to have to pay taxes over unfagious earnings of companies with large crypto asset reserves.
It was stated that this situation in the taxation of crypto assets could determine the relevant companies from keeping digital assets in their hands. In this context, Lummis and Moreno demanded that the Treasury should reduce the tax burden or not to be included in the tax calculation.
“Institutions now have to pay taxes over unprecedented increases in the value of crypto assets. Neither the congress nor the fascies foresee this result, this is an undesirable result of the decisions of a private organization focusing on financial statements.” – Lummis and Moreno’s letter to the Treasury Minister
The tax application and possible revisions seem to directly affect the crypto asset sector. The current disadvantaged position of US companies may also reduce the tendencies of some institutions to hold digital assets, which can affect the US’s international position in the field of innovation and financial technology.
While there are various opinions in the public and the sector, a possible arrangement request from the Treasury Ministry is carefully monitored. In the future, the issue is planned to be extensively handled by congress and financial authorities.
Tax regulations on digital assets in the US are considered one of the factors that can determine the competitiveness of companies in the global market. The steps to be taken in line with the views of the government and sector representatives may affect the future of the digital financial sector.
Responsibility Rejection: The information contained in this article does not contain investment advice. Investors should be aware that crypto currencies carry high volatility and thus risk and carry out their operations in line with their own research.
