Citing a draft budget for the 2024 fiscal year, U.S. President Joe Biden will propose changes to the taxation of cryptocurrency transactions. Biden expects that to raise tax revenues for the industry by as much as $24 billion.
A White House spokesman confirmed that the proposed regulations should reduce bogus transactions. The scheme involves loss-making cryptocurrency sales to lock in losses that are not taxable. The investor then repurchases the asset for a similar amount again.
Koinly representative Danny Telvor said that if the proposal is approved, many cryptocurrency holders who entered the field after the market peak in 2021 will suffer huge losses.