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.

Bitcoin Reserve Controversy

In his letter to U.S. Treasury Secretary Scott Bessent, Gerald E. Connolly stated that the proposed cryptocurrency reserve by the Trump administration lacks economic justification. He further warned that the government favoring specific digital assets through social media could disrupt the market.

According to Connolly, establishing such a reserve holds no strategic benefit for taxpayers. The Federal Reserve (FED) also criticized the initiative, calling it “the dumbest idea ever.”

Trump and Crypto Conflict of Interest

Connolly pointed out that the Trump administration did not consult Congress before moving forward with the Bitcoin reserve plan and did not receive any official authorization. He also accused Trump of a conflict of interest, as the Trump Organization owns the crypto platform World Liberty Financial and has profited significantly from the Official Trump (TRUMP) memecoin.

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The Democrat lawmaker described the TRUMP token as “Trump’s most lucrative get-rich scheme yet.” Other Democrats, including Maxine Waters, also criticized the token, arguing that Trump’s crypto initiatives do not serve the public good.

Treasury Department’s Response Awaited

Connolly has requested the U.S. Treasury Department to provide documents detailing the creation of the Bitcoin reserve and to clarify what steps the Trump administration has taken to prevent conflicts of interest. He also inquired about which crypto assets the government currently holds.

Meanwhile, the White House stated that the Strategic Bitcoin Reserve would only consist of cryptocurrencies seized in federal criminal or civil cases and would be managed through budget-neutral strategies. The Digital Asset Stockpile, on the other hand, would include non-Bitcoin cryptocurrencies, such as XRP, Solana, Cardano, and Ethereum.

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The post Democrat Lawmaker Opposes Trump’s Bitcoin Reserve Plans! appeared first on Coin Engineer.