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Unanswered Questions Remain About Biden’s Proposed $18B Crypto Tax

President Joe Biden has recently stated that the government is losing $18 billion due to cryptocurrency tax loopholes. However, many in the crypto industry are skeptical about the source and accuracy of this number.

Proposed Crypto Tax Loophole Leaves Industry Confused

The confusion comes from the fact that there is no concrete evidence to support the existence of such a loophole, leaving many in the industry questioning the president’s claim.

The Biden administration’s budget proposal suggests that eliminating the wash sale loophole for digital assets could generate $23 billion in revenue over the next ten years, with a projected $1.24 billion in 2024. However, it is unclear how the $18 billion figure relates to this proposal. Some speculate that it may be connected to the administration’s earlier plan to tax crypto transactions differently, which was expected to raise $24 billion.

The proposal to tax crypto transactions differently was reported on by The Wall Street Journal earlier this year. The administration argued that crypto assets were not subject to the same wash trading rules as traditional securities like stocks and bonds.

President Biden’s recent tweet about the $18 billion figure was part of a larger discussion on the debt limit and potential budget cuts with congressional leaders. Biden expressed willingness to “cutting wasteful spending,” but he disagrees with many of the proposed reductions put forward by the GOP.

Part of Broader Discussion on Debt Limit and Budget Cuts

It is worth noting that some Republicans have developed closer ties with the crypto industry in recent years. The conservative Club for Growth, for instance, has launched two crypto-focused super PACs in the last election cycle. Meanwhile, the White House has been active in developing and releasing a series of digital asset reports last year, indicating the administration’s growing interest in crypto policy.

Overall, the $18 billion figure remains a topic of debate within the crypto industry. While there is no conclusive evidence to support the existence of such a loophole, the Biden administration’s budget proposal suggests that eliminating the wash sale loophole for digital assets could generate significant revenue over the next ten years.

The administration’s interest in developing digital asset reports and engaging with the industry shows that they are taking steps to shape crypto policy moving forward.

Alex Lirette

Alex Lirette is a renowned expert in the world of cryptocurrency, with a passion for bitcoin, blockchain, NFTs, and DAOs. He started his journey into the world of cryptocurrency in 2014 and has since continuously expanded his vast knowledge in this field. Alex has become a trusted source of information and insights, with a particular focus on the latest developments in the world of blockchain technology. As a thought leader in the industry, Alex regularly shares his expertise with others through his contributions to the gmBlockchain blog. He is known for his ability to break down complex concepts into understandable and relatable terms, making it easier for people to understand and appreciate the power of blockchain technology.

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