"Hey all kinds of things, the US government has a plan to generate more revenue."
United States (US) President Joe Biden's proposed budget for the coming fiscal year outlines a series of regulatory measures aimed at tapping into the growing cryptocurrency market.
Among the highlights are the administration's implementation of wash trading regulations, crypto mining taxes and additional regulations, so officials estimate they could reach $10 billion in revenue by 2025 and then that number could rise to over $42 billion over the next decade.
Also reported, Biden's announced budget has set his sights on closing crypto tax loopholes and this mostly favors wealthy firms while it also involves setting foreign digital asset account reporting rules.
Over the course of a decade, digital asset transactions under wash sale regulations are expected to generate $25 billion while mark-to-market regulations over $7.3 billion and an excise tax on crypto mining could reduce the national deficit by about $7 billion.
So here it can be seen that wash trading rules can prevent investors from exploiting a quick buyback strategy to claim tax losses as the aim is to modernize the tax code to deal with the challenges posed by the crypto market.
The context of the proposal is the political landscape leading up to the 2024 US general election, where Biden and former President Donald Trump have clinched their parties' nominations.
Please note that the introduction of regulatory measures is an attempt to resolve the complexities of the digital economy and it also focuses on a focused approach aimed at leveraging the crypto market for monetary gain.
