US President Joe Biden’s proposed changes to the tax rules regarding cryptocurrency may face opposition from Republican-controlled Congress. The plan is part of his budget for the 2024 fiscal year, which will be unveiled this week, and includes a new minimum tax of 25% on unrealized capital gains, and a doubling of the tax on ordinary realized capital gains from 20% to 40%. These changes are expected to generate $24 billion in revenue for the government. The proposal also aims to prevent crypto holders from ‘loss harvesting,’ a technique used to deduct losses from tax bills. However, the proposed budget is unlikely to pass given the opposition from Republican members of Congress.
