Biden Budget Proposal Estimates Additional $11B in Revenues by 2032 by Updating Crypto Rules
Michael Bellusci - CoinDesk
U.S. President Joe Biden released his 2023 budget proposal on Monday, and in it, his administration is seeking to modernize rules around digital assets that it says would generate an additional $11 billion in revenues by 2032, as well as expand the Department of Justice’s ability to counter cyber threats that involve ransomware and the use of cryptocurrencies.
- Among the digital asset rules the administration is looking to update are amending the mark-to-market rules to include digital assets; requiring reporting by certain taxpayers of foreign digital asset accounts; providing for information reporting by financial institutions and crypto brokers; and treating loans of securities as tax-free to include other asset classes and “address income inclusion.”
- The administration estimates that modernizing these rules will bring in almost $11 billion in revenue between 2023-2032, with more than $4.8 billion coming from the first year of applying mark-to-market rules to digital assets.
- The proposal also seeks to expand the DOJ’s budget by $52 million for “more agents, enhanced response capabilities, and strengthened intelligence collection and analysis capabilities” and noted that “These investments are in line with the Administration’s counter-ransomware strategy that emphasizes disruptive activity and combating the misuse of cryptocurrency.”
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