How will Biden's budget affect cryptocurrencies?

U.S. President Joe Biden's proposed budget, set to be unveiled Thursday, will include a provision to close tax loss harvesting on crypto transactions. A White House official confirmed the budget will include a tax provision intended to reduce wash sales trading by crypto investors.

How does the IRS treat crypto?

The IRS treats crypto as property, not as a security, which is how the asset class escapes these rules. President Biden already passed a crypto-related tax provision that was tucked in his 2021 infrastructure act, causing an uproar from the industry.

Can cryptocurrencies be taxed?

A White House official confirmed the budget will include a tax provision intended to reduce wash sales trading by crypto investors. At present, investors can sell any cryptocurrencies at a loss, claim the loss on their taxes and then buy the same amount and type of cryptocurrencies again.

What will Biden's budget include?

The U.S. President is expected to unveil his budget proposal on Thursday. U.S. President Joe Biden's proposed budget, set to be unveiled Thursday, will include a provision to close tax loss harvesting on crypto transactions.