The U.S. Treasury Department has clarified that unrealized gains on digital assets will not fall under the Corporate Alternative Minimum Tax (CAMT), delivering a major win for companies like Michael Saylor’s Strategy. The move prevents billions in potential phantom tax liabilities and aligns crypto treatment with equities and bonds.

This decision marks a departure from the Biden-era tax stance and follows months of lobbying by industry leaders including Strategy and Coinbase, who argued that taxing unrealized crypto gains was unfair and risked driving firms offshore. The updated guidance comes just as the Senate Finance Committee holds a hearing on digital asset taxation, highlighting the growing urgency around clear rules for the sector.

Senator Cynthia Lummis (R-Wyo.), a strong crypto advocate, hailed the move as a victory for common sense. For Strategy, the exemption secures its ambitious plan to accumulate $1 trillion in Bitcoin reserves, freeing the company and others to expand their Bitcoin treasuries without fear of sudden tax shocks.