U.S. President Joe Biden will propose changes to crypto taxation in an upcoming budget, according to a report from the Wall Street Journal on March 8.
That report says that Biden will modify taxes on crypto transactions that will prevent wash trading. Though rules against wash trading apply to stock and bond trading, they are not being applied to cryptocurrency trading, the WSJ says.
This means that investors can sell certain investments and accept a tax-deductible loss before reinvesting — an illegal practice that the government undoubtedly wants to prevent.
The new policy is projected to raise $24 billion.
Biden is expected to release the new budget on Thursday, March 9.
The IRS otherwise extended the scope of crypto tax rules in February.