U.S. Senators Cynthia Lummis and Bernie Moreno are urging the Treasury Department to revise tax rules for cryptocurrency firms, arguing that a current policy could inadvertently disincentivize innovation. The Corporate Alternative Minimum Tax (CAMT) aims to apply a 15% minimum tax on corporations with average annual financial statement income exceeding $1 billion, including unrealized gains from digital assets. This raises concerns about the potential burden on U.S. companies investing in cryptocurrencies. The senators contend that the current rules, which require companies to report unrealized gains as part of their financial statements, create an undue tax burden, potentially pushing firms to sell off assets just to cover taxes. They argue this could hinder long-term growth within the industry and give foreign competitors a competitive advantage. Lummis and Moreno’s calls for an exemption on unrealized crypto gains under CAMT highlight the need for a level playing field in the digital asset market, especially as they push their BITCOIN Act, which proposes building a national Bitcoin reserve and authorizing the Treasury to acquire up to one million BTC. The debate highlights broader concerns about the impact of accounting standards like ASU 2023-08 on tax liabilities and investor behavior within the crypto space. It raises questions about how financial regulations can balance innovation with regulatory oversight, particularly as countries worldwide work to establish clearer regulations in the fast-evolving digital asset market.