US President Joe Biden on Monday unveiled his 2025 budget proposal, which includes a number of provisions aimed at transforming the crypto industry, including wash sale rules for digital assets and an excise tax on crypto mining operations.
Biden’s crypto mining tax and crackdown on wash sales
If Biden's $7.3 trillion budget bill passes, the federal government will crack down on crypto “wash sales.” The idea is that crypto holders sell their assets at a loss “to reduce their tax burden” and then immediately buy them back.
The budget says it will eliminate tax subsidies by “modernizing the tax code's anti-abuse rules that apply to crypto assets in the same way that they apply to stocks and other securities.”
“This budget would save billions of dollars by closing other tax loopholes that overwhelmingly benefit the wealthy and the largest and most profitable corporations,” the proposal reads. This includes “closing loopholes that benefit wealthy crypto investors.”
Similarly, the proposed budget would introduce a 30% excise tax on the cost of energy used by crypto mining companies, according to the US Treasury's annual Green Book.
“Increased energy consumption due to the growth of digital asset mining not only has negative impacts on the environment and increases energy prices for companies sharing the power grid with digital asset miners, but also has implications for environmental justice. “This could have a negative impact,” the Ministry of Finance's explanation said.
House Republicans reject budget bill
Biden's 2025 budget proposal faces an uphill battle, with Republicans in Congress opposed to the proposal. The president has tried in the past few years to close wash sale loopholes and introduce a cryptocurrency mining tax, but to no avail.
“The price tag of President Biden's budget is a stark contrast to the current administration's insatiable appetite for reckless spending and Democrats' disregard for fiscal responsibility,” House Speaker Mike Johnson (R-Louisiana) said in a statement released with the House majority. This is another stark reminder.” It will be read by Whip Tom Emmer (R-Minn.), House Majority Leader Steve Scalise (R-Louisiana), and Rep. Elise Stefanik (R-New York). “Biden's budget not only misses the mark, it's a roadmap that will accelerate America's decline.”
My joint statement is @SteveScalise, @GOPMajorityWhipand @RepStefanik About Biden's budget proposal: pic.twitter.com/6StD9YAzMe
— Speaker Mike Johnson (@SpeakerJohnson) March 11, 2024
Political tensions between Democrats and Republicans continue to smolder as the 2024 presidential election heats up following last week's Super Tuesday and Biden's State of the Union address.
Biden vs. Trump rematch almost confirmed
Republican front-runner Donald Trump appears to have expressed support for cryptocurrencies, even though he previously admitted he was “not a fan,” and just recently announced that his newly released sneaker line is Bitcoin-based. announced that it is accepting payments.
Meanwhile, Biden has pushed for regulatory guidance for the cryptocurrency industry, going so far as to issue an executive order in 2022 on “Ensuring the Responsible Development of Cryptocurrency Investments.”
The 2020 presidential candidates appear ready to face off again in November after both officially secure their party candidacies.
