Crypto is hot, and the White House thinks the industry should pay a bigger share of taxes.
President Joe Biden’s proposed federal budget anticipates $11 billion in new revenue over the next decade from revised crypto rules. It expects around $5 billion in additional revenue in 2023 alone.
The projected tax revenue is based on proposals to “modernize rules” related to digital assets. The bulk of the additional revenue would come from a proposal around extending "mark-to-market" rules to more digital assets, which could mean that crypto that appreciates in price might be taxed even if it's not sold.
The plan is part of the Biden administration’s plan to shrink the national deficit by more than $1 trillion over the next decade.
The Biden budget also seeks an additional $52 million to counter cyber threats, including boosting programs for “combating the misuse of cryptocurrency.”
President Biden earlier this month issued an executive order that affirmed the importance of cryptocurrencies while stressing the need to protect consumers, investors and the financial system.