Treasury Proposes Tax Relief for Select Sectors
The U.S. Treasury and IRS recently proposed new tax regulations offering potential relief to cryptocurrency and real estate companies, sparking debate over Treasury's expanded regulatory influence.
These tax proposals could significantly impact how large corporations and foreign investors, especially in cryptocurrency, manage U.S. tax obligations, despite lacking direct market responses so far.
U.S. Treasury's 2025 Tax Relief Sparks Constitutional Debate
In a recent move, the U.S. Treasury Department, under Secretary Scott Bessent's leadership, proposed new regulations offering tax relief benefits for select sectors, including cryptocurrency companies and foreign real estate investors. These proposals have circulated in regulatory circles rather than made headlines, but they have still sparked considerable interest in financial and policy-making communities.
The proposed regulations may change how foreign investors and large corporations structure U.S. tax obligations. They aim to relax rules, such as preventing multinational firms from claiming duplicate losses. The U.S. Treasury's expanding role in tax law, without new legislation, has raised constitutional concerns, as detailed in Treasury's Tax Regulatory Process.
Market reactions have been muted regarding these proposed changes. Prominent figures, such as Kyle Pomerleau of the American Enterprise Institute, have expressed concern, noting that the Treasury's approach "undermines this constitutional principle" of Congress's control over tax law.
"Through forward-thinking policies like ‘No Tax on Tips’, the President is boosting paychecks for America’s working families. This is critical to our goal of achieving Parallel Prosperity by building an economy where Main Street and Wall Street grow together. All workers deserve an equal chance to pursue the American Dream." — Scott Bessent, Secretary, U.S. Department of the Treasury
Little Market Reaction Seen Despite Regulatory Shift
In contrast to the impactful 2017 Tax Cuts, these 2025 proposals have not triggered significant crypto community reactions, with minimal documented on-chain activity.
Ethereum (ETH) recently traded at $3,600.15. The cryptocurrency maintains a market cap of $434,525,756,446, comprising 12.17% market dominance. Trading volumes surged by 44.15% to $33,340,374,720. Over the past 90 days, prices fell 15.87%. Supply remains infinite, reflecting current trends in the digital asset landscape.
Insights from Coincu research suggest potential outcomes include broader tax implications for international crypto funds. As multinational corporations adjust structures, digital asset entities might capitalize on updated regulations to optimize cross-border investments.