Biden’s budget proposal includes crypto

 

U.S. President Joe Biden’s fiscal 2024 budget proposal came with a couple of points regarding the crypto industry.  The Biden administration proposed doubling the capital gains tax rate and banning crypto wash sales in the budget plan. The plan aims to reduce the federal budget deficit by $3T over the next decade. One of the proposals suggests increasing the capital gains tax rate from 20% to 39.6% on long-term investments for those earning at least $1M.  The shift in the capital gains tax rate will return to the treasury as $24B in savings. Another proposal includes a ban on wash sales, or a strategy known as tax-loss harvesting, in the crypto sector. A crypto wash sale means that a crypto trader sells assets at a loss and repurchases them immediately for tax purposes.  This strategy is not allowed with stocks and bonds by law, but crypto traders can currently do that since digital assets are not classified as securities.