The proposed rules targeting digital assets are expected to generate nearly $10 billion in additional tax revenue by 2025.
The Biden administration unveiled its proposed 2025 budget on March 11, which included provisions to implement a series of regulatory measures targeting digital assets.
The proposed rules are expected to generate nearly $10 billion in additional tax revenue by 2025.
plug loopholes
The new budget proposal specifically targets a loophole that has previously allowed wealthy cryptocurrency investors to disproportionately benefit. By closing this gap, the government seeks to create a more level playing field for all investors and improve tax fairness. The measure is part of a broader effort to adapt the state's tax code to the modern era of investment and technology.
Additionally, the proposals include taking a comprehensive approach to digital assets, applying wash sale rules to these assets, addressing related-party transactions, and modernizing regulations to treat securities loans as tax-exempt to cover other asset classes. These steps are intended to update the tax system to reflect the unique characteristics and challenges of digital asset transactions.
Additionally, the budget emphasizes strengthening reporting requirements for financial institutions and digital asset brokers. The change is intended to ensure that transactions involving cryptocurrencies are subject to the same regulations as traditional financial transactions, thereby increasing transparency and reducing opportunities for tax evasion.
The administration also plans to expand the scope of U.S. tax compliance efforts internationally by requiring certain taxpayers to report foreign digital asset accounts.
financial details
According to the filing, applying wash sale rules to digital assets is expected to raise more than $1 billion in tax revenue in fiscal 2025 alone.
The budget also states that the inclusion of digital assets in mark-to-market rules, which require taxes to be paid on a security’s current market value rather than its purchase price, is expected to generate an additional $8 billion in revenue during the same year.
The proposal also imposes an excise tax on cryptocurrency mining operations, reflecting the industry’s rapid growth and relatively small financial contribution, especially given its environmental footprint.
The proposed excise tax on cryptocurrency mining is expected to reduce the state deficit by approximately $7 billion over the same time period. While similar tax provisions were proposed in last year's budget, they faced legislative hurdles and were not enacted by Congress.
In addition to these cryptocurrency-related proposals, Biden's budget broadly promotes lower household costs, stronger Social Security and Medicare, and higher taxes on corporations and the wealthy.
据哥伦比亚广播公司报道，预算可以在十年内削减3万亿美元的赤字，同时增加4.9万亿美元的税收收入，并为各种项目分配大约 1.9万亿美元。#加密税收 #数字资产