In order to reduce the nation’s deficit by trillions of dollars, President Joe Biden’s 2024 budget proposal is said to target a tax loophole used by crypto investors.
According to the report, Biden would suggest modifying how cryptocurrency transactions are taxed. As of right now, investors are free to sell their underwater cryptocurrency investments, deduct the loss from their taxes, and then buy them right back.
According to the report, the government said that such sales are exempt from the so-called wash-sale rule that is applicable to stocks and bonds. The wash-sale rule prohibits stockholders from immediately repurchasing shares after selling them for tax purposes.
On Thursday, Biden was scheduled to present his budget proposal for 2024. The president wants to reduce the US deficit by around $3 trillion over the next ten years.
According to the Journal, changing how cryptocurrency transactions are taxed could raise $24 billion.
The recommendation was made after cryptocurrency values fell last year as a result of the market’s ongoing “crypto winter.” After hitting $3 trillion in 2021, the value of the overall cryptocurrency market dropped below $1 trillion in 2022 and bitcoin plunged by more than 60%.
This year, the market has been recovering, as seen by the 30% increase in the price of bitcoin thus far. On Thursday, the digital currency was trading around $21,760.
