Two US senators are calling on Treasury Secretary Scott Bessent to \u201cexercise [the department\u2019s] authority\u201d and change a provision affecting taxes on corporate holdings of digital assets.<\/p>\n
In a May 12 letter, Senators Cynthia Lummis and Bernie Moreno suggested<\/a> Bessent had the authority to change the definition of \u201cadjusted financial statement income\u201d under existing US law in a way that could reduce what digital asset companies pay in taxes. The proposed adjustment was suggested as a way to modify a provision of the Inflation Reduction Act, signed into law in 2022.<\/p>\n \u201cOur edge in digital finance is at risk if US companies are taxed more than foreign competitors,\u201d said<\/a> Lummis in a May 13 X post.<\/p>\n May 12 letter to Treasury Secretary Scott Bessent. Source: <\/em>Cynthia Lummis<\/em><\/a><\/p>\n According to the two senators, the proposed modification would provide \u201crelief to corporations that invest in digital assets.\u201d Lummis has been one of the most outspoken digital asset advocates in Congress, while Moreno took office in January after crypto-backed political action committees spent roughly $40 million<\/a> to support his 2024 Senate race.<\/p>\n Related: <\/strong><\/em>Arizona governor kills two crypto bills, cracks down on Bitcoin ATMs<\/strong><\/em><\/a><\/p>\n The Inflation Reduction Act, which went into effect in 2023, imposes a 15% minimum tax on companies that report more than $1 billion in profits for three consecutive years. The measure would seemingly include unrealized crypto gains and losses, leading to Lummis\u2019 and Moreno\u2019s calls for the Treasury Department to \u201cact swiftly.\u201d<\/p>\n The call from the two senators came as lawmakers in the Senate are expected to consider another vote<\/a> on the Guiding and Establishing National Innovation for US Stablecoins, or GENIUS Act \u2014 legislation to regulate payment stablecoins in the US. A motion for consideration failed to move forward<\/a> in the Senate on May 8 due to Democratic lawmakers pushing back on Donald Trump\u2019s ties to the crypto industry.<\/p>\n Lummis, one of the bill\u2019s co-sponsors, suggested<\/a> that she would continue to support digital asset regulation. The Senate could take up another vote in a matter of days. <\/p>\nSenate awaiting second vote on stablecoin bill<\/h2>\n