Biden wants to impose a new 30 percent tax on the electricity that Bitcoin miners are using — regardless of how it's sourced. That means many will move abroad.
President Biden in March released his budget proposal for fiscal year 2025. In it, he proposed three changes to the way federal law operates with respect to cryptocurrency. There are some good changes, such as the application of existing securities regulations to crypto. But there is also one bad change — namely, a special tax on crypto mining.
Firstly, the proposal contains two regulatory changes. First is the elimination of a tax loophole that allows cryptocurrency traders to write off losses on assets they sell and then quickly rebuy. Second is the implementation of security loan nonrecognition rules to actively-traded crypto asset loans.
The first change simply expands existing rules for stock and bond trading to cryptocurrencies. This is a great example of the government creating an even playing field for similar asset classes without creating new cumbersome and bureaucratic regimes.
