- He plans to raise $24 billion in the budget
- To do this, the president proposes a 30% tax for miners
- As well as severe restrictions for investors
US President Joe Biden has announced his budget proposal for next year. It has several points that traders, investors and miners from the cryptocurrency market will not like.
The president’s first initiative is to reduce mining activity. He proposes to introduce a phased excise tax at a rate of 10% per year for three years. That is, in the end, the miners will have to give the budget 30% of the amount they pay for electricity.
This should reduce the activity of miners and help raise money for the treasury.
Also, the US government intends to raise about $24 billion through taxes on trading crypto assets. They will ban a strategy in which traders sell their assets at a loss in order to receive a tax deduction and subsequently repurchase the sold assets.
Such an accounting trick was resorted to, for example, by Microstrategy. They sold some bitcoin last year to get tax breaks on the loss. And then they bought the coins back.
This practice is not allowed in the US for stocks and bonds due to current sham sale rules. However, until now, cryptocurrencies have not been subject to the law, since this type of asset is not officially recognized as securities.