Biden to Tax and Regulate Cryptocurrency
President Joe Biden regulating this new frontier is an important development.
From Fox Business. The Washington adage, “If it moves, tax it, and if it keeps moving, regulate it,” appears to apply to cryptocurrency, which has been on the move in popularity, reaching a market cap of $3 trillion, up from $14 billion five years before, according to both the White House and the Treasury Department.
In the last month, the Biden administration has targeted digital assets in its federal budget proposal and separate executive order. The largest cryptocurrencies are Bitcoin and Ethereum, but others have gained ground among investors.
The Biden administration’s proposed budget for fiscal year 2023 would increase IRS reporting requirements on digital assets and change tax laws for cryptocurrency dealers and traders to net an estimated $11 billion in revenue from 2023 through 2032….
Biden issued an executive order in March directing the Treasury Department and other agencies to develop recommendations for regulating digital assets to prevent systemic financial risks, and to explore establishing a potential U.S. Central Bank for Digital Currency if the issuance is deemed in the national interest….
Thanks to a provision in the bipartisan infrastructure legislation last year, cryptocurrency exchanges, and entrepreneurs already face tougher reporting requirements than other financial assets, argued John Burlau, a senior fellow at the Competitive Enterprise Institute. The infrastructure act expanded the definitions of “broker” and “digital assets.” He contends the $11 billion revenue estimate, and broad definitions would prompt the IRS to be more aggressive in going after the industry….
The Biden administration is very likely to miss the $11 billion estimate, said Liz Mair, a Republican political consultant who describes herself as a “recovering” banking and mergers and acquisitions lawyer who is familiar with financial services and tax policy.
“It seems glaringly obvious from events over the last few years that few decision-makers in Washington, D.C., really get crypto, or much in the realm of tech and innovation generally. That makes me skeptical that this proposal will be a well-reasoned one — or that when Congress goes to look at it, that they will do anything particularly smart and well-thought-out with it,” Mair told Fox News regarding Biden’s tax proposal….
How are you praying for our economy as it evolves to accommodate cryptocurrency? Share this article to keep people informed about Biden’s policies.
(Excerpt from Fox Business. Photo Credit: André François McKenzie on Unsplash)
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