U.S. Treasury Department Decision to Delight Bitcoin Bulls!

Ahmet yeniceri — Thu, 02 Oct 2025 13:30:12 +0000

The U.S. Treasury Department appears poised to significantly soften its controversial tax rules on Bitcoin gains. This move will provide relief, particularly for Michael Saylor and other major investors. Companies may no longer be required to pay taxes on paper gains. The Treasury Department’s reversal will simplify the management of crypto investments in the U.S., allowing firms to maintain their strategies.

CAMT Regulation Backtrack, Tax Burden Eased

The Corporate Alternative Minimum Tax (CAMT), scheduled to take effect on October 1, would have required companies to pay billions of dollars in taxes on unrealized Bitcoin gains. CAMT requires large companies to pay at least 15% tax on their reported income. However, the Treasury Department is considering softening this requirement.

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Currently, the US Financial Accounting Standards Board (FASB) requires companies to account for their crypto assets “at market value.” This means that when the price of Bitcoin rises, companies must record the paper gains as income. For Strategy, which holds approximately $73 billion in Bitcoin reserves, this translates to a massive tax burden. In contrast, unrealized gains on traditional assets like stocks are tax-exempt.

Joint Request from Companies to the Treasury

Strategy and Coinbase had previously opposed this differential treatment and sent a joint letter to the Treasury Department in May. The letter requested that crypto gains be exempted. The companies argued that taxing paper gains would force firms to sell Bitcoin. American companies could be at a disadvantage in global competition as a result. Furthermore, “taxing non-existent income” raises constitutional issues.

The Treasury Department is backing down and reassuring major crypto investors. US companies can retain their Bitcoin reserves.

The post U.S. Treasury Department Decision to Delight Bitcoin Bulls! appeared first on Coin Engineer.

White House Will Support Rescinding DeFi Broker Rule!

Yigit Taha OZTURK — Tue, 04 Mar 2025 18:00:56 +0000

The Trump administration has announced its support for repealing the IRS DeFi broker rule, which is set to take effect in 2027. If approved by Congress, Donald Trump is expected to sign the resolution into law.

White House Signals Support for DeFi Industry!

David Sacks, the AI and crypto czar in the Trump administration, stated on March 4 that the White House backs legislative efforts to overturn the IRS regulation expanding the definition of “broker” to include DeFi access providers.

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Sacks confirmed via X (formerly Twitter) that the administration supports a resolution introduced by Texas Senator Ted Cruz and Ohio Representative Mike Carey under the Congressional Review Act to repeal the rule.

Senior White House advisers have reportedly recommended that Trump sign the resolution into law if passed by Congress.

Why Is the DeFi Broker Rule Controversial?

The IRS rule aims to classify software providers enabling access to DeFi protocols as brokers, thereby imposing strict reporting obligations on them.

The crypto community argues that such regulations could stifle innovation and undermine the decentralized nature of DeFi. White House support for rescinding the rule sends a positive signal to the DeFi industry.

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