The U.S. Treasury will relax corporate Crypto Assets tax rules.

On October 1, according to cryptoinamerica, the U.S. Treasury is preparing to officially relax a tax proposal that would have required companies like Strategy, led by Michael Saylor, to pay billions in taxes on unrealized Bitcoin gains under the Biden-era Corporate Alternative Minimum Tax (CAMT) regulations. CAMT imposes a minimum tax rate of 15% on the financial statement income of large corporations. Due to the current requirement from the Financial Accounting Standards Board (FASB) that companies account for Crypto Assets using "mark-to-market" accounting (meaning gains and losses must be recorded at current market prices regardless of whether they are sold), this means that the book profits of Bitcoin would be taxed, while unrealized stock gains would be exempt. This represents a significant potential tax burden for companies like Strategy that hold approximately $73 billion in Bitcoin. The proposal has faced joint opposition from Strategy and CEX. In May of this year, the two companies sent a joint letter to the Treasury urging the exemption of unrealized crypto gains from taxation, pointing out that the differentiated tax treatment of digital assets compared to traditional stocks and bonds is unfair. They warned that taxing book profits could force companies to sell Bitcoin solely to pay taxes, putting U.S. companies at a competitive disadvantage internationally, and even raising constitutional questions about "taxing nonexistent income." As the U.S. Congress and the Trump administration advance the legislative process for digital asset taxation, the topic is gaining increasing attention. This morning at 10 AM, the Senate Finance Committee will hold a hearing on cryptocurrency taxation to continue discussions on the matter.