Wednesday, 24 July 2024
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BitcoinCrypto

As Joe Biden Focuses on Crypto, Bitcoin Breaks

  • On March 12, Bitcoin hit a record high of $72,850 due to a decline in the value of the US dollar.
  • The budget proposal seeks to close tax loopholes that largely affect wealthy individuals and large corporations to save billions of dollars.
  • Up to $8 billion is estimated to be generated from the mark-to-market guidelines that include cryptocurrencies.
  • On March 12, Bitcoin hit a record high of $72,850 due to a decline in the value of the US dollar and easier access to buy and trade.. In his proposed budget for the following year, US President Joe Biden outlined proposals to reinstate the wash buying and selling rule, tax cryptocurrency mining, and implement other regulatory measures.

According to administration estimates, these taxes may bring in around $10 billion by 2025 and more than $42 billion over the next ten years.

Bitcoin

The rise in Bitcoin beyond $72,500 points to more gains, with the 50-day EMA sitting around $66,860. Key initiatives about the cryptocurrency industry are included in Biden‘s proposed budget for the upcoming fiscal year.

These include the application of wash sale regulations to digital assets, the requirement that financial institutions and cryptocurrency brokers report information, the reporting of cryptocurrency accounts abroad, the inclusion of cryptocurrency in mark-to-market taxation, and the imposition of an excise tax on cryptocurrency mining operations.

The budget proposal seeks to close tax loopholes that largely affect wealthy individuals and large corporations to save billions of dollars. These steps include closing the like-kind trade loophole, establishing tax-preferred retirement plans, prohibiting the ultra-rich from abusing life insurance tax shelters, fixing a loophole that benefits wealthy cryptocurrency buyers, and removing the tax benefit for company aircraft.

Through the extension of standard market wash buying and selling procedures to crypto assets, the budget plan also aims to close a loophole that has been exploited inside the cryptocurrency market, namely about non-fungible tokens (NFTs). The administration expects to generate over $1 billion in fiscal year 2025 from the wash sale criteria that include digital asset transactions.

Up to $8 billion is estimated to be generated from the mark-to-market guidelines that include cryptocurrencies. These measures could result in $25 billion from wash sale standards and $7.3 billion from mark-to-market guidelines over the following ten years; however, the latter is expected to add to the deficit after 2025.

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