Eminence submitted a comment letter to the United States Committee on Finance regarding how Congress can address uncertainties surrounding the tax treatment of digital assets. In the letter, Eminence states the significant interest in digital assets from both retail and institution investors, prompting the global alternative asset management industry to invest in them. However, regulatory uncertainty, including tax-related issues, remains a major obstacle in digital assets investments.
Eminence commends the Committee on Finance for recognizing the need to address regulatory and tax uncertainties surrounding digital assets. Eminence focuses on trading safe harbors, emphasizing that clear tax guidance on trading digital assets is essential for their widespread adoption. Additionally, Eminence proposes that Congress should legislate a new trading safe harbor for digital assets to promote competitiveness in U.S. capital markets, aligning with the goals of the Biden Administration Executive Order on Ensuring Responsible Development of Digital Assets. Alternatively, Eminence suggest that regulatory or administrative guidance should clarify that the commodities trading safe harbor applies broadly to digital asset trading, achieving similar policy goals efficiently.
