Category: Tax Task Force

The Corporate Alternative Minimum Tax (CAMT) The Digital Chamber & Digital Power Network’s Opposition

by Neil Humphrey

Last Updated: June 4, 2025

What is CAMT?

The Corporate Alternative Minimum Tax (CAMT), created by the Inflation Reduction Act of 2022, sets a 15% minimum tax for large corporations that earn more than $1 billion per year on average. Instead of relying on the traditional tax system, which allows companies to lower their taxable income through deductions and credits, the CAMT is based on the income they report to investors in their financial statements. This new system was designed to ensure that highly profitable companies can’t reduce their tax bills to near-zero using accounting strategies, and that they contribute a baseline amount in federal taxes each year.

How Did CAMT Come to Include Unrealized Crypto Gains?

In December 2023, the Financial Accounting Standards Board (FASB) updated its rules to require companies to report the fair market value of digital assets on their financial statements.

This shift means that unrealized gains and losses must now be reflected in a company’s reported income, even if those assets haven’t been sold. Because CAMT calculations are tied to this financial statement income, these paper gains can now trigger real tax obligations. As a result, companies with significant crypto holdings may find themselves liable for taxes on value they have not yet realized in cash, raising concerns about liquidity, fairness, and unintended consequences for digital asset innovation.

Who is Affected?

The intersection of CAMT and the new accounting standards primarily impacts large corporations with significant digital asset holdings. These companies may face substantial tax bills based on paper gains, without having liquidated the assets to generate cash. This scenario raises concerns about liquidity and financial planning, especially in volatile markets.

Legislative Response

Senators Lummis (R-WY) and Moreno (R-OH) have called on the Treasury to issue guidance that excludes unrealized crypto gains from CAMT calculations. They argue that taxing unrealized gains is inconsistent with traditional tax principles and could hinder innovation in the digital asset space. The senators suggest that the Treasury has the authority to adjust CAMT regulations to prevent unintended consequences and maintain a fair tax environment for U.S. companies.

Conclusion

The application of CAMT to unrealized cryptocurrency gains has sparked debate over tax fairness and economic competitiveness. As the Treasury considers potential adjustments, stakeholders await clarity on how digital assets will be treated under the evolving tax landscape.

The Digital Chamber and Digital Power Network oppose CAMT and urge for its swift repeal.

If you have any questions, please reach out to Policy@digitalchamber.org

CHAMBER RESPONDS TO SENATE FINANCE COMMITTEE ON TAXATION OF DIGITAL ASSETS

by Nicole Rankin

September 8, 2023 – Today, The Chamber of Digital Commerce responded to the Senate Finance Committee’s solicitation for policy input on the taxation of digital assets. 

In the response, The Chamber provides clarity on marking-to-market for traders and dealers, trading safe harbor, the treatment of loans of digital assets, wash sales, constructive sales, timing and source of earned income from staking and mining, nonfunctional currency, FATCA and FBAR reporting, and valuation. 

These responses were all formulated with the best interest of preserving safe innovation for blockchain technology and digital assets and align with The Chamber’s belief that by fostering an environment that encourages innovation coincides with ensuring regulatory compliance.  

“We believe that our collective efforts can lead to a more comprehensive and effective regulatory framework that balances the need for innovation with the necessity of compliance and investor protection,” said Cody Carbone, Vice President of Policy. “The Chamber appreciates the Committee’s thoughtfulness in engaging industry on this issue and looks forward to continuing to engage with the Committee on this and other matters of importance to the business community as they develop their legislative efforts.” 

Chamber Response to Biden Administration Proposed 30% Tax on Crypto Mining

by Ethan Brady

The proposed tax on electricity use by crypto mining companies is not about environmental concerns; rather, it is a misguided attempt to stifle innovation in an industry that uses less than 1% of United States electricity. Crypto mining is an industry that creates new jobs, spurs the transition to renewable energies, and lays the foundation for alternative financial opportunities for the under- and unbanked. Discouraging mining in the United States would increase emissions elsewhere, in countries and regions where energy sectors are much less regulated and responsible than the United States. Therefore, energy security is national security, and it is essential that we develop this technology at home and not allow this leadership opportunity to go abroad.

At a Senate EPW hearing in March, Senators Ricketts and Lummis both highlighted that energy production is already one of the most regulated industries in the world at the point of generation. Mining is an end-user of power purchased in fair and open markets, much like electronic vehicles, and this tax would be a significant overreach by the government picking winners and losers in the market and determining which Americans may purchase and use energy resources for business operations.

Instead of penalizing crypto mining companies, policymakers have the opportunity to work with industry leaders on innovative solutions that will reduce energy consumption while allowing for continued growth and development of the industry.