New U.S. Crypto Tax Reporting Rules Could Bring $5B Revenue in 2023
President Biden’s 2023 budget proposal suggests applying several accounting and tax reporting rules to digital assets, which could generate $11 billion in revenue over the next ten years.
The Biden administration has announced its budget for next year. Totaling $5.8 trillion with a $1.15 trillion deficit, it gives some direction what the administration’s long-term plans are for crypto.
The White House is proposing that modernizing rules for cryptocurrency — primarily through expanding tax reporting requirements — would bring to the government’s coffins over $10 billion in new revenue over a decade.
The budget also noted an additional $52 billion in funding for the Department of Justice to hire more agents and analytical capabilities as part of “the Administration’s counter-ransomware strategy that emphasizes disruptive activity and combatting the misuse of cryptocurrency.”
At this stage, the budget is just a proposal for changes that would go into effect on January 1, 2023. Over the coming six months or so, Congress and the administration will hash out the particulars.
In addition to the White House’s budget, The Treasury published its strategic plan for the next four years, which highlights the role of the Financial Stability Oversight Council in addressing “New and growing threats to financial stability addressed, with a focus on risks from climate change and digital assets,” in keeping with the Treasury’s work to expand FSOC’s role in crypto.
Earlier in March, President Biden put out an executive order on digital assets. Regardless, concerns in advance within the crypto industry, the order primarily commissioned studies by a range of federal agencies instead of calling for a broad crackdown.
