Important points
- Bitcoin reached its fourth all-time high in less than a week on March 12, 2024, and the second time in less than 24 hours.
- The news comes as Joe Biden proposes applying wash sale rules and taxing crypto mining.
- The U.S. government estimates that these new taxes and regulations could generate billions of dollars over the next decade.
- The White House proposed a similar measure in last year's budget proposal, but it was not implemented.
Despite US President Joe Biden announcing various proposals regarding cryptocurrencies, Bitcoin has once again reached an all-time high.
BTC has been on a notable bull run, trading at an all-time high of $72,850.71 on March 12, supported by increased trading accessibility and a weaker dollar.
Meanwhile, Biden announced plans to reintroduce wash trading rules, a cryptocurrency mining tax and other regulatory measures in his budget. For next year.
The administration estimates that the benefits from these taxes could reach nearly $10 billion in 2025 and exceed $42 billion over the next 10 years.
Bitcoin soars above $72,000, market cap approaches $2.7 trillion
Bitcoin soars to record high As of March 12th, it was $72,850.
The total market capitalization of virtual currencies increased by 4.6% to approximately $2.72 trillion, and the 24-hour trading volume increased by 41.3% to $166 billion. According to CoinMarketCap, stablecoins accounted for $149.9 billion, or 90.3% of the crypto market's total 24-hour trading volume. data.
Bitcoin’s recent rally above $72,500 highlights its market dominance, supported by bullish technical signals. It faces resistance at $73,824, $76,749, and $79,904, but supports at $67,154, $64,861, and $62,192 can prevent a decline.
Although there is some evidence of overbought, Bitcoin's rise above $70,000 suggests that the uptrend will continue. In fact, this coin is aiming to reach over $73,800. The 50-day EMA sits at his $66,860, further underscoring the bullish outlook.
Biden's wash sale rules and measures such as virtual currency mining tax
presidential budget proposal The next year's plan, announced on Monday, outlines key initiatives aimed at the crypto sector.
These include the application of wash sale rules to digital assets, mandatory information reporting to financial institutions and crypto brokers, offshore account reporting of cryptocurrencies, inclusion of cryptocurrencies in market value taxation, and excise tax on crypto mining. This includes the introduction of operation. Biden's plan could ultimately pay off if the U.S. Bitcoin mining sector continues to thrive.
The proposed budget outlines measures expected to save billions of dollars. It aims to eliminate tax loopholes that primarily target the wealthy and large corporations.
These measures include
- Eliminate like-kind exchange loopholes. This now allows real estate investors to defer taxes indefinitely.
- Institutionalize tax-advantaged retirement incentives to prevent the ultra-wealthy from accumulating tax-free assets.
- Stop the exploitation of life insurance tax avoidance by the super wealthy.
- Closing loopholes that favor wealthy crypto investors and ending tax breaks on corporate jets.
Wash sale rules for NFTs
Budget proposal seeks to address loopholes that have been exploited in the cryptocurrency market, particularly non-fungible tokens (NFTs), by extending traditional market wash trading rules to crypto assets. Currently, unlike stock and bond investors, crypto investors can sell their cryptocurrencies at a loss, claim a significant tax deduction, and then buy back the same cryptocurrencies the next day.
As detailed in the fact sheet, the budget aims to close this gap by updating the tax code so that the anti-abuse rules that apply to stocks and other securities also apply to virtual currencies. We are aiming for It was released on a budget.
The administration's brief reveals ambitious revenue projections from tighter regulation of digital asset trading. By incorporating digital asset transactions into the wash sale rules, the government expects to generate more than $1 billion in revenue in fiscal year 2025, and by including cryptocurrencies in the mark-to-market rules, the government expects to generate more than $8 billion in revenue.
Over the next 10 years, these actions could generate $25 billion in gains from wash sale rules and $7.3 billion from mark-to-market rules. However, the latter should contribute to his post-2025 national deficit. Additionally, an excise tax on cryptocurrency mining could reduce the national deficit by about $7 billion.
Biden budget re-proposes crypto tax and wash sale amendments
latest budget proposal The bill from the Biden administration marks repeated efforts to implement a mining excise tax and address loopholes in wash sale transactions, mirroring efforts in last year's budget that Congress did not include in the final budget bill. are doing.
The proposal follows President Biden's State of the Union address, which did not mention digital assets.
Both President Biden and former President Donald Trump appear to have secured their respective parties' nominations for the 2024 general election, scheduled for November.
In fact, compared to Biden, who appears to be skeptical of cryptocurrencies, Trump seems to have a favorable opinion of Bitcoin. He recently claimed that BTC is an “additional form of currency.”
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