Main Points:
- Senators Cynthia Lummis and Bernie Moreno request that unrealized cryptocurrency gains be excluded from the Corporate Alternative Minimum Tax (CAMT) calculation
- FASB’s ASU 2023-08 requires corporations to recognize unrealized crypto gains in Adjusted Financial Statement Income (AFSI)
- OCC affirms that national banks may custody digital assets, though the Federal Reserve’s guidance remains ambiguous
- Oregon enacts SB 167 to amend its UCC, officially recognizing crypto assets as collateral
- New Hampshire signs HB 302, allowing up to 5% of public funds in crypto and precious metals
- Missouri legislature passes a bill eliminating capital gains tax on crypto transactions, pending the governor’s signature
- SEC Chair announces forthcoming comprehensive token rules to foster clarity and innovation
1. Background: CAMT and ASU 2023-08
The Corporate Alternative Minimum Tax (CAMT) was established under the 2022 Inflation Reduction Act to impose a minimum 15% tax rate on the average Adjusted Financial Statement Income (AFSI) of large corporations—those with at least $1 billion in three-year average AFSI. Traditionally, AFSI excluded unrealized gains on assets still held by the company. However, the Financial Accounting Standards Board’s Accounting Standards Update (ASU) 2023-08, effective in 2023, mandates that firms mark their crypto holdings to market at each reporting date and recognize any increase in fair value as revenue on the income statement. Consequently, unrealized gains from cryptocurrencies such as Bitcoin (BTC) and Ethereum (ETH) are being factored into AFSI for CAMT purposes, potentially forcing corporations to pay tax on gains they have not yet realized through sale.
This intersection of the CAMT regime and ASU 2023-08 has raised concerns that companies could be compelled to liquidate digital assets merely to cover tax liabilities on paper gains. Lawmakers and industry participants argue that this outcome was neither intended by Congress nor contemplated by FASB during the rule-making process.
2. Lawmakers’ Letter to the Treasury
On May 14, 2025, Senators Cynthia Lummis (R-WY) and Bernie Moreno (R-OH) formally petitioned Treasury Secretary Scott Bessant to exercise regulatory discretion under Internal Revenue Code Section 56A(c)(15) and (e). They urged immediate clarification or amendment to exclude unrealized cryptocurrency gains from the AFSI calculation used to determine CAMT liabilities . In their joint letter, the senators emphasized that the current approach constitutes an “unintended and excessive regulatory burden” that threatens American competitiveness in digital finance. They highlighted that Congress and FASB did not intend for companies to be taxed on unrealized crypto gains, warning that the existing framework could stifle innovation and prompt firms to shift operations offshore where fair-value crypto accounting is not enforced.
The senators referenced a precedent in IRS Notice 2023-20, which granted relief to insurance companies under CAMT, illustrating that the Treasury has both the authority and practical experience to implement similar relief for the crypto sector. They called for swift issuance of guidance or a regulatory revision to restore parity between digital-asset and traditional-asset treatments in CAMT computations.
3. Banking Regulators’ Stance on Crypto Custody
Simultaneously with federal tax debates, U.S. banking regulators have taken significant steps to clarify banks’ authority to offer digital-asset services. The Office of the Comptroller of the Currency (OCC) issued an interpretive letter affirming that national banks and federal savings associations may custody cryptocurrencies and provide execution services when acting on customer direction. This builds on a March 2025 statement that rescinded an earlier requirement for case-by-case OCC approval prior to offering crypto services.
However, the Federal Reserve’s stance remains less definitive. While OCC guidance explicitly sanctions crypto custody, the Fed describes certain digital-asset activities as potentially “unsafe or unsound,” creating a tension that banks find difficult to navigate. Industry observers are awaiting a clearer Fed policy statement to align federal banking charters on both sides, but in the interim, national banks under OCC supervision have clearer pathways to custody digital assets.
4. State-Level Innovations: Oregon’s SB 167
On May 7, 2025, Oregon Governor Tina Kotek signed Senate Bill 167 into law, amending the state’s Uniform Commercial Code (UCC) to explicitly define “digital assets” and allow their recognition as collateral. SB 167 expands the UCC definitions to include electronic money, hybrid transactions, tokenized records, and digital assets, thereby modernizing commercial law to reflect emerging technologies.
Under SB 167, digital assets can serve as collateral in secured transactions, enabling lenders and borrowers to structure deals under established commercial-law frameworks. The law’s amendments ensure that merchants and financial institutions in Oregon can accept crypto collateral with legal certainty, fostering greater institutional adoption and potentially spurring new fintech offerings in the state. By integrating digital assets into its commercial code, Oregon positions itself as a forward-leaning regulatory environment for blockchain-based commerce.
5. New Hampshire’s Strategic Bitcoin Reserve
Just days earlier, on May 6, New Hampshire became the first U.S. state to authorize creation of a Strategic Bitcoin Reserve under House Bill 302, signed by Governor Kelly Ayotte. The law permits the state treasurer to invest up to 5% of public funds in assets including Bitcoin and other digital assets with market capitalizations exceeding $500 billion, as well as in precious metals. State-held crypto must be stored using a secure custody solution, through a qualified custodian, or as exchange-traded products (ETPs) issued by registered investment companies.
This initiative mirrors federal proposals under a prior presidential executive order, but New Hampshire’s law breaks new ground by allocating fresh capital to build a digital-asset reserve. Supporters argue that such reserves can hedge against inflation and diversify state portfolios. The bill will take effect 60 days post-enactment, providing a test case for other states considering direct crypto investment.
6. Missouri’s Capital Gains Exemption for Crypto
In a parallel development, the Missouri legislature passed a sweeping tax overhaul on May 7, eliminating state capital gains taxes on a broad array of assets, including cryptocurrencies, pending gubernatorial approval. If signed, Missourians will be able to realize gains on Bitcoin, XRP, and other digital assets without state-level tax liabilities. Individuals benefit immediately, while corporate exemptions take effect in the year following any state income-tax rate reduction trigger—projected for 2030 under the fiscal note.
Proponents contend that a zero-tax environment for crypto gains will attract blockchain businesses and investors to Missouri, augmenting economic development. Opponents warn of reduced state revenues, though advocates argue that the move could broaden the tax base by drawing new residents and enterprises to the state.
7. Federal Regulatory Landscape: SEC’s Upcoming Token Rules
On May 12, SEC Chair Paul Atkins announced the agency’s intention to establish clear, consistent rules for digital-asset tokens, aiming to distinguish securities from non-securities and streamline lawful issuance, custody, and trading. Addressing a crypto task force meeting, Atkins emphasized the need for a “rational framework” that balances investor protection with market innovation. The SEC is considering allowing registered broker-dealers with Alternative Trading System (ATS) approvals to trade tokens like Bitcoin and Ethereum without categorizing them as securities.
Atkins’ approach contrasts with the stricter enforcement of his predecessors, signaling a potential shift toward regulatory cooperation. The agency is also poised to withdraw or pause select enforcement actions against major platforms such as Coinbase and Kraken, reflecting the new administration’s pro-crypto orientation.
8. Market Reactions and Industry Implications
Following the senators’ letter and the flurry of state-level reforms, crypto markets experienced modest volatility. Bitcoin held around $95,000 – $97,000 in mid-May as investors assessed the tax-treatment risks and broader regulatory outlook. Institutional participants have signaled that clarity on CAMT treatment is crucial to maintain long-term treasury allocations in digital assets. Meanwhile, financial institutions are rapidly updating compliance and tax-reporting systems to accommodate the new FASB standards and potential Treasury guidance.
Banks supervised by the OCC are accelerating integrations with custody providers and third-party crypto-service vendors to capitalize on relaxed custody rules. State governments in Oregon and New Hampshire anticipate new public-private partnerships and fintech hubs to leverage their updated legal frameworks. In Missouri, local crypto startups are evaluating expansion plans ahead of an anticipated surge in demand for tax-efficient trading platforms.
Conclusion
The convergence of federal tax debates, banking regulator clarifications, and pioneering state-level legislative reforms marks a pivotal moment for U.S. cryptocurrency policy. Senators Lummis and Moreno’s appeal to exclude unrealized crypto gains from CAMT underscores the urgency of aligning tax structures with digital-asset realities. Concurrently, the OCC’s envoy letters and SEC’s planned token rules illustrate a broader shift toward accommodating crypto within traditional financial systems. At the state level, Oregon’s UCC amendments, New Hampshire’s Bitcoin reserve, and Missouri’s capital-gains exemption exemplify disparate but complementary approaches to fostering innovation and competitiveness. As the Treasury contemplates regulatory relief, stakeholders across finance, technology, and government will watch closely—anticipating whether the U.S. can reconcile prudent oversight with the agility required in the rapidly evolving world of blockchain and digital finance.
