Media: Biden proposes to raise $24bn in taxes from crypto investors

U.S. President Joe Biden is set to propose changes to the taxation of cryptocurrency transactions. The Wall Street Journal, citing the budget plan for fiscal year 2024, reports.

The president estimates that this would raise receipts from the industry to $24 billion. A White House spokesperson confirmed to CoinDesk that the proposed rules would curb sham trades.

The scheme involves loss-making sales of cryptocurrency to realise losses that are not taxable. The investor then repurchases a similar amount of assets. U.S. law bans such manipulations in stocks and bonds.

“If the proposal is adopted, many cryptocurrency holders who entered the space after the 2021 market peaks will incur enormous losses,” said a spokesperson for Koinly, Danny Telwar.

The Biden changes touch several areas. In particular, he calls for doubling the capital gains tax for those earning over $1 million, to 39.6%. It also calls for greater contributions to the federal budget from oil and gas companies.

Over the next decade these proposals are expected to reduce the budget deficit by almost $3 trillion.

Before the president signs the budget, the bill will be reviewed and approved by the House of Representatives and the Senate.

In late January, the White House urged Congress to ‘step up’ efforts to oversee the digital-asset market.

In February, ФРС warned banks about liquidity risks associated with crypto firms.