It is a well-known fact that US President Joe Biden is working on better regulation of crypto assets. New news today shows that Biden is seeking a solution to how capital gains taxes can be applied to crypto assets.
Also known as the “Build Better” bill HR 5376There was a lot of talk in the US press that there was a clause in .
based in New York InvestopediaThe “Constructive Selling Rule” was created in 1997 to prevent investors and free market funds from taking advantage of a loophole in the law that allows them to lock in investment gains without having to pay capital gains taxes.
“Constructive sales“, short selling against the same or similar properties and immediately subsequent delivery of the same property”futures contractsknown as “.
Currently, USA Law 1259According to , the “Constructive Selling rule” only applies to “financial positions defined and accepted as any position relating to any stock, debt instrument or partnership interest, if such a position is sold, transferred and there will be a profit”. valid. Otherwise, it will be destroyed at fair market value.”
The proposed legislation, on the other hand, aims to replace this clause by adding the word “digital assets” after debt instruments. The goal is that crypto investors will no longer be able to “avoid” capital gains taxes by making constructive sales.
Although the new law will enter into force as soon as the bill is passed, it will only be valid for contracts signed after it is enacted.