Wed. AM-PM Seeds of Wisdom Crypto Update(s) 5-14-25

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Seeds of Wisdom

SENATORS URGE TREASURY TO RETHINK TAX ON UNREALIZED CRYPTO GAINS

Senators Cynthia Lummis (R-WY) and Bernie Moreno (R-OH) are calling on the U.S. Treasury to exempt unrealized cryptocurrency gains from a tax rule they argue unfairly penalizes American firms and stifles innovation.

In a letter sent Tuesday to Treasury Secretary Scott Bessent, the senators criticized how the 2022 Corporate Alternative Minimum Tax (CAMT), when combined with new FASB accounting rules, may result in companies owing taxes on crypto assets they haven’t sold. They claim this approach leaves U.S. businesses at a competitive disadvantage globally.

“Our edge in digital finance is at risk if U.S. companies are taxed more than foreign competitors,” Lummis tweeted, sharing the letter on X.

Background: What’s the Issue?

The CAMT, enacted under the Inflation Reduction Act, imposes a 15% minimum tax on corporations with $1 billion+ in average annual earnings, based on adjusted financial statement income (AFSI)—not traditional taxable income.

In December 2023, the Financial Accounting Standards Board (FASB) adopted ASU 2023-08, requiring companies to use mark-to-market (fair value) accounting for crypto assets. This means firms must report unrealized gains from unsold crypto on financial statements.

Now, under CAMT rules, these unrealized gains could be treated as taxable income, even though the companies haven’t liquidated the assets.

“Neither Congress nor FASB planned this outcome,” the senators wrote. “It’s the unintended result of basing tax liability on decisions by a private organization… not principles of taxation.”

Potential Fallout

Lummis and Moreno warned this tax interpretation could:

• Force companies to sell crypto assets just to cover tax bills.
• Discourage innovation and crypto adoption in the U.S.
• Give foreign competitors an edge, as many follow different accounting standards.

They urged the Treasury to:

• Exclude unrealized crypto gains from CAMT calculations.
• Issue interim guidance immediately, before long-term damage is done.

 Political and Regulatory Context

This challenge follows recent moves by President Trump’s administration to roll back Biden-era crypto regulations:

• In April, Trump signed a law repealing the controversial DeFi broker rule.
• In March, the Senate overturned the IRS requirement that decentralized finance (DeFi) protocols report user activity like banks.

Senator Lummis, a longtime crypto advocate, has led several legislative efforts including:

• The Lummis-Gillibrand Responsible Financial Innovation Act (2022).
• The BITCOIN Act (2025), reintroduced in March, to codify Trump’s executive order on establishing a national Bitcoin reserve.

What’s Next?

While the Treasury has yet to respond publicly, the pressure is mounting. The senators stressed the urgency, writing:

“Failure to provide this clarity… will disincentivize entities from maintaining large holdings of digital assets.”

If the current policy stands, the U.S. risks losing ground in the global race for digital finance leadership. Lummis and Moreno said they are willing to work directly with Treasury officials to resolve the issue.

The battle over how crypto is taxed—especially unrealized gains—could shape the future of digital asset adoption in the U.S.

@ Newshounds News™

Source: Decrypt

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South Korea Makes Crypto a Key E------n Battleground

As South Korea gears up for its June 3 presidential e------n, the D--------c Party has launched a Digital Asset Committee to centralize crypto policymaking under the president’s office. The move signals crypto’s rise as a major political and economic issue.

Key Points:

• New Digital Asset Committee formed on May 13 to shape national crypto policy.
• Focus areas: regulatory reform, stablecoins, exchange laws, and centralized oversight.
• The committee is drafting the “Stage 2 Bill” to modernize outdated digital asset laws.

Stablecoins in Spotlight:

• Won-pegged stablecoins are a priority, but debate continues over licensing vs. registration.
• Bank of Korea (BOK) demands final authority over KRW-linked stablecoins to protect monetary policy.

Political Stakes:

• Lee Jae-myung (D--------c Party) supports crypto innovation and a won-linked stablecoin.
• Kim Moon-soo (opposition) supports crypto adoption through public fund investment and legal clarity.
• With 16M+ South Koreans using crypto, digital assets have become a top campaign issue.

Crypto is no longer niche in Korea—it’s a vote-winner.

@ Newshounds News™

Source: Coinpedia

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Source: Dinar Recaps

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XRP Lawyer Warns Stablecoin Bill Could Be Delayed Until 2029 — Here’s Why

John Deaton says the GENIUS Act, a key stablecoin bill, may not pass until 2029, potentially stalling U.S. crypto reforms and undermining the dollar’s global dominance.

The ongoing debate over U.S. stablecoin regulation has taken a new turn as prominent XRP lawyer John Deaton sounded the alarm about the potential delay of the GENIUS Act—a bipartisan bill aimed at regulating stablecoins. According to Deaton, the failure to pass this legislation could push broader crypto reforms back until 2029.

“If Congress can’t get the GENIUS Act passed, we won’t see a Market Structure Bill, which means we won’t see any long-lasting reform until 2029, depending on how the Presidential e------n goes,”
— John Deaton, via X (formerly Twitter)

Deaton’s warning echoes recent concerns expressed by Messari CEO Ryan Selkis, who argues that without foundational legislation like the GENIUS Act, the U.S. risks losing its leadership in digital finance innovation.

The Importance of the GENIUS Act

Deaton referred to the bill as a “no-brainer” and framed it as vital to maintaining U.S. dollar dominance on the global stage. He emphasized that as countries pursue de-dollarization, stablecoins offer the U.S. a strategic lever to drive global demand for U.S. Treasury securities (USTs).

“We’re in an era when other nations are attempting to de-dollarize the world. We MUST drive demand for UST and ensure the USD remains the world’s reserve currency. If politicians can’t get the GENIUS Act through, then there’s little chance more complex, long-lasting legislation will pass,”
— John Deaton

The GENIUS Act—short for “Guaranteed Essential Neutrality in United States Stablecoins”—has earned the nickname “Dollar Dominance Bill” among crypto advocates for its potential role in reinforcing the dollar’s status through regulated digital assets.

Political Roadblocks and Skepticism

Despite bipartisan backing from several lawmakers and the crypto industry, the bill faces strong resistance—most notably from Senator Elizabeth Warren, who has consistently criticized crypto legislation on grounds of national security and consumer protection.

“The Senate shouldn’t greenlight this c--------n by passing the GENIUS Act without fixes,”
— Senator Elizabeth Warren

Warren’s opposition stems from concerns that stablecoins could be used to bypass traditional financial oversight and pose risks to the U.S. economy. Her resistance may stall the bill’s progress during an already contentious e------n year.

Why This Delay Matters

The crypto industry sees stablecoin legislation as a foundational step toward broader market regulation. Without the GENIUS Act, other key bills—such as the long-awaited Market Structure Bill—may never see a vote. This could leave U.S. companies behind as global competitors move ahead with clearer digital asset policies.

With the 2024 presidential e------n looming, Deaton and other advocates fear that partisan divides could stall legislative momentum for years, creating prolonged regulatory uncertainty for crypto businesses and investors alike.

@ Newshounds News™

Source: CoinGape – Full article

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BRICS Influence Grows as European Firms Shift Away From US Dollar

European financial institutions are increasingly receiving requests to use local currencies instead of the US dollar, signaling BRICS’ growing global economic influence.

In a development that signals a major geopolitical and financial shift, several European banks, brokers, and financial institutions are reporting an uptick in client requests to conduct transactions in local currencies—not the US dollar. According to the Luxembourg Times, these requests involve hedging and cross-border transactions in currencies like the Chinese yuan, Hong Kong dollar, Emirati dirham, and the euro.

This marks a notable milestone: for the first time, foreign institutional funds are asking to bypass the US dollar altogether in transactions handled by European finance firms. The change reflects the influence of the BRICS alliance’s strategy to de-dollarize global trade by promoting local currency settlements.

From Dollar Hub to Direct Transfers

Traditionally, financial transactions—especially those crossing multiple borders—have relied heavily on the US dollar as an intermediary currency. For example, when a Japanese firm wants to send money to a Philippine-based fund, it would typically route the payment through the dollar, which would then be converted into pesos.

Now, corporate clients are pushing for new protocols that completely skip the US dollar, aiming to cut costs, reduce exposure to dollar volatility, and support regional economic partnerships. European firms are being asked to accommodate these demands with currency strategies that allow for direct transfers between non-dollar pairs.

BRICS Ideology Reaches Europe

The ideological push for local currency empowerment has long been championed by the BRICS bloc—Brazil, Russia, India, China, and South Africa, with recent expansions including the UAE, Egypt, Iran, and Ethiopia. The alliance has openly advocated for reducing reliance on the US dollar in global trade and reserves.

Now, that de-dollarization strategy appears to be influencing European markets. The increasing preference for local currencies by institutional clients reflects growing confidence in non-dollar instruments and frustration with dollar-dominated systems, especially amid volatile geopolitics and trade tensions.

Technology and Liquidity as Key Drivers

Gene Ma, Head of China Research at the Institute of International Finance, noted that advancements in financial technology and liquidity are key enablers of this trend.

“The increase in transactions between non-US currencies is largely due to technological development and increased liquidity. The trading parties feel that the price may not be worse than using the US dollar, so transactions naturally pick up,” Ma explained.

Trade War Legacy and Uncertainty Under Trump

The movement also follows years of trade tensions and tariffs introduced during Donald Trump’s first term. Though President Trump has paused new tariffs for 90 days, uncertainty still looms large. The fear of sudden economic shifts and rising nationalism has made many businesses rethink their overreliance on the US financial system.

Analysts suggest that if BRICS and its partners fully transition to local currency settlements, it could reshape global trade flows and challenge the dollar’s reserve status. The growing demand for currency derivatives outside the dollar system may be a signal that this shift is already underway.

Conclusion

The shift toward local currencies in Europe, inspired by BRICS’ economic ideology, represents a potential inflection point in global finance. As more institutional players move away from the US dollar, traditional financial systems may need to adapt quickly to remain relevant in a multipolar currency environment.

@ Newshounds News™

Source: Watcher.Guru

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Source: Dinar Recaps

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