The U.S. government aims to address two important issues specific to cryptocurrencies in its budget plan to be announced soon.
In the news presented by the Wall Street Journal, the Biden administration Thursday, March 9 about the cryptocurrency industry in the details of the budget plan he will announce today. notable headlines is located. budget deficit in the next 10 years. 3 trillion dollars government, which plans to reduce Increasing cryptocurrency taxes And “Wash Trading” aimed at preventing transactions.
Doubling of taxes and ban on Wash Trading transactions
There are two major gaps in crypto trading under US law, and the Biden government is preparing to intervene. Currently, investors under US law sell any cryptocurrency at a loss can claim to deduct this loss from their individual taxes. Investors can then buy the same amount and type of cryptocurrency again.
This tax gap The government, which thinks that it has created new rules, will aim to prevent the situation by introducing new rules. According to experts, this step is taken to the USA. 24 billion dollars provide support. In addition, the Biden administration is committed to long-term investments. more than $1 million for winning investors subtracting the capital gains tax rate from 20% to 39.6% will offer.
On the other hand, the second major issue is Wash Trading operations will be prevented. Wash Trading says that a whale is misleading in the market and an artificial activity the same financial tools to create sold/bought at the same time It can be explained as a form of market manipulation.
In general markets Such transactions are completely prohibited.. However, this ongoing deficit in crypto markets is reflected in billions of dollars of damage to the financial systems of countries. The Biden government’s new budget proposal will recommend banning and overseeing similar transactions in the crypto sector.