Bitcoin News Today: Treasury Lifts Phantom Tax Burden on Corporate Bitcoin Holdings

The U.S. Treasury Department has issued interim guidance exempting unrealized gains on digital assets from the 15% Corporate Alternative Minimum Tax (CAMT), a move expected to alleviate potential multibillion-dollar tax liabilities for major corporations holding Bitcoin. This decision follows sustained advocacy from firms like Strategy and Coinbase, which argued that taxing paper profits on unsold crypto assets creates an unfair competitive disadvantage compared to traditional stocks and bonds. The guidance, formalized in Notice 2025-49, introduces an "FVI Exclusion Option," allowing companies to disregard fair value adjustments for digital assets marked-to-market in financial statements but not for tax purposesTreasury to Exempt Bitcoin from 15% CAMT Tax on Unrealized …^[1].

Strategy, a prominent Bitcoin holder with over 640,000 units (valued at $74 billion), had faced estimated CAMT liabilities of billions annually starting in 2026 under existing rules. The exemption eliminates this burden, aligning tax treatment of digital assets with traditional securities and commodities. The Treasury's move also addresses constitutional concerns raised by Strategy and Coinbase, who contended that taxing unrealized gains under CAMT conflicts with the Sixteenth Amendment's income tax framework. The companies highlighted additional issues under the non-delegation doctrine, as the tax liability stemmed from Financial Accounting Standards Board (FASB) rules requiring mark-to-market accounting for crypto assetsUS Treasury Eases Crypto Tax Rules — Bitcoin Stands …^[2].

The guidance introduces a "Hedge Coordination Option" for hedging transactions where both the hedge and hedged item are marked-to-market for tax purposes but not for financial reporting. These adjustments aim to resolve distortions in adjusted financial statement income calculations. The exemption is part of broader efforts to harmonize tax policies with international standards, as non-U.S. corporations are not subject to similar accounting requirements. This parity is critical for maintaining U.S. competitiveness, as foreign firms face no such constraints on unrealized gainsThere's New Tax Guidance on Bitcoin. Here's Why That Matters.^[3].

The Senate Finance Committee is set to convene a hearing on October 1 to examine digital asset taxation, featuring industry representatives and tax experts. Lawmakers, including Senators Cynthia Lummis and Bernie Moreno, had previously urged Treasury Secretary Scott Bessent to address what they termed an "unintended tax burden." The hearing underscores growing congressional scrutiny of CAMT's application to crypto assets, with advocates arguing that the exemption supports innovation in the digital financial sector. The Treasury's revised rules also align with Executive Orders 14178 and 14219, which aim to strengthen U.S. leadership in digital finance while mitigating regulatory barriers to technological advancementTreasury to Exempt Bitcoin from 15% CAMT Tax on Unrealized …^[1].

The exemption provides immediate relief for companies considering Bitcoin as a corporate treasury asset. Strategy's CEO, Michael Saylor, has emphasized the firm's long-term goal of accumulating $1 trillion in Bitcoin reserves, a strategy that would have been jeopardized by potential tax liabilities under prior rules. The Treasury's guidance allows firms to rely on interim measures without adopting all proposed CAMT regulations, offering flexibility until final rules are published. This clarity is expected to encourage further corporate adoption of Bitcoin, as firms no longer face the risk of phantom tax obligations on unsold holdingsUS Treasury Eases Crypto Tax Rules — Bitcoin Stands …^[2].

The decision reflects a broader shift in regulatory approach toward digital assets, balancing compliance with market realities. While the exemption applies to the 2026 tax year, it does not extend to taxes on realized gains or other asset classes. The Treasury's actions signal a recognition of the unique accounting challenges posed by crypto assets, though long-term regulatory frameworks remain under development. As the Senate hearing proceeds, stakeholders will likely monitor how this policy evolution influences future legislative efforts to define the tax treatment of digital assetsThere's New Tax Guidance on Bitcoin. Here's Why That Matters.^[3].