U.S. President Joe Biden recently pointed out the support of “MAGA House Republicans” for tax loopholes that benefit wealthy crypto investors, stirring up a heated discussion on Crypto Twitter. In response, Dogecoin co-creator Billy Markus argued that most American crypto users aren’t rich but are simply using crypto due to financial struggles. As part of his proposed fiscal year 2024 budget, Biden aims to update tax codes for crypto assets, following the same rules as stocks and other securities. This change would recover approximately $24 billion, according to the President.
On the other hand, critics argue that the U.S. government should be supporting the growing technological and financial revolution of cryptocurrency. As other nations tap into these new markets and opportunities, updated regulations in the U.S. are more important than ever to foster and not hinder innovation.
There is a growing concern over the lack of clear regulatory guidance on crypto in the United States. This uncertainty has reportedly led crypto firms to employ layers, cancel deals, and may even be inhibiting the market itself. In response, Security and Exchange Commission (SEC) chair Gary Gensler has increased efforts against crypto companies accused of selling unregistered securities, such as Genesis, Terraform Labs, Justin Sun, and Bittrex. However, not everyone in the SEC agrees with this aggressive approach.
While the crypto industry faces regulatory hurdles, the White House is currently pushing for a 30% excise tax on the energy consumed by crypto miners. This proposal is likely to receive opposition from Republican lawmakers, who have already lined up against the idea of a U.S. central bank digital currency (CBDC). Florida Governor Ron DeSantis even called the CBDC a possible platform for Democrats to use for implementing “Woke Politics.”
In conclusion, the debate surrounding cryptocurrency regulations and taxes has intensified, with the Biden administration seeking to implement tax code updates and the crypto community demanding more support for innovation. Whether these changes make it past Republican opposition and become part of the fiscal year 2024 budget remains to be seen. However, what is certain is that a balanced approach to crypto taxation and regulation is essential to encourage growth in this evolving industry while ensuring everyone pays their fair share.
Source: Decrypt
