The U.S. Treasury Department is officially preparing to ease a proposed tax rule that could have required companies to pay billions of dollars in unrealized Bitcoin gains.
According to pro-crypto journalist Eleanor Terrett, the rule stems from the Corporate Alternative Minimum Tax (CAMT), a Biden-era policy requiring large corporations to pay at least 15% tax on their financial statement income.
Why Treasury Seeks to Ease Corporate Crypto Tax Rule
However, the Treasury Department is considering easing the tax bill due to complications arising from the accounting standards. Under current FASB rules, companies must use ‘mark-to-market’ accounting for crypto, recording Bitcoin and other digital assets at their fair market value.
This means firms would show gains even if no sales occurred, and under CAMT, those paper profits would be taxed. By contrast, unrealized stock gains are not taxed, leaving crypto firms uniquely exposed.
Relief for Strategy
This could have resulted in a staggering tax bill for a company like MicroStrategy (now Strategy), which holds an estimated $73 billion in Bitcoin, despite not selling any assets.
Recall that the initial proposal triggered strong industry pushback. In May, Strategy and San Francisco-based exchange Coinbase jointly urged Treasury to exclude unrealized crypto gains from CAMT calculations.
In their letter, they argued that the approach unfairly penalized digital assets compared to stocks and bonds. They contended that the move could force Bitcoin-focused companies to sell their BTC merely to pay taxes.
Moreover, they warned that it could put U.S. companies at a competitive disadvantage relative to their international peers.
Congress to Address Crypto Tax Complications
Interestingly, momentum has built around the issue in recent weeks. Both the U.S. Congress and the Trump administration have signaled interest in addressing digital asset taxation more broadly.
Debates on the matter are expected to continue today. Lawmakers could continue their debate at a Senate Finance Committee hearing on crypto taxation, slated for 10:00 a.m (ET).
Evans Kelvin
