Thursday's greenbook proposes taxes on cryptomining companies and crackdown of crypto wash sales
The President of the United States released a budget proposal for 2023 on Thursday. In the list, the President proposed a surprise treatment for the crypto sector as part of his proposal. President Joe Biden's budget proposal would oversee crypto mining and a crypto tax treatment
The regulatory authorities have been putting more pressure on the crypto industry for some time now, which led to a strong reaction to the fact that the US government is at war with cryptocurrency. However, Joe Biden's budget proposal represents these actions to such an extent that the government is moving closer to regulating the crypto industry, as some already believe that if these proposals are implemented, it will be a big problem for the crypto industry.
On Thursday, the president argued that strategies currently used in tax-loss situations are not part of the rules for stocks and bonds. Wash selling, the strategy of selling assets at a tax loss and immediately buying them back. This strategy cannot be applied to crypto assets, if applied to digital assets it will affect the crypto project and investors who jumped into the market when the price was high.
Also include a budget proposal that would raise revenue by imposing mining and wealthy taxes, account for the cost of electricity used for both computer mining and crypto mining companies. Think they are trying to reduce the number of mining companies in the US by introducing a tax levies claiming thar!;
"The increase in energy consumption due to the growth of digital asset mining has negative environmental consequences and may have environmental consequences and increase energy prices for those who share a power grid with digital asset miners," as states in the greebook. "Digital asset mining also creates uncertainty and risk for local utilities and communities, as mining activities are highly variable and highly mobile. An excise tax on electricity consumption by digital asset miners could reduce mining operations, along with associated environmental impacts and other damages."
The statement reveals that Mr. President's plan is to reduce the deficit before his next term in office as he plans to run for a second term. But still in questions why crypto wash sale will be cracked down and why he planned to double the capital gains tax.
If the US crackdown is implemented, I believe this would be adopted by other jurisdictions where crypto wash sales apply, and before we know it, it will become law all over. So I don't expect the Republican-led House to accept this president's proposal. Wash sales is what gives crypto more value and make the space more interesting, or what did you think about Mr. President budget proposal?
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