rakuten left binance left net_left adver left

US Democratic Lawmakers Introduce Bill to Close Tax Loophole Used by Crypto Investors

The plan of the House’s Democratic lawmakers’ is to impose the same trading rules on cryptocurrencies that apply to stocks and bonds on the stock market. If...
US Democratic Lawmakers Introduce Bill to Close Tax Loophole Used by Crypto Investors US Democratic Lawmakers Introduce Bill to Close Tax Loophole Used by Crypto Investors

  • The plan of the House’s Democratic lawmakers’ is to impose the same trading rules on cryptocurrencies that apply to stocks and bonds on the stock market.
  • If the bill is passed, investors in Bitcoin, ethereum and other digital currencies would lose the current benefits offered by the lack of regulations.

The bill, proposed on Monday 13th by Democratic lawmakers in the US House of Representatives, seeks to impose “wash sale” rules related to cryptocurrencies, commodities and digital assets.

This follows a memorandum released by the Ways and Means Committee of the House. The legislation aims to close the current existing tax loophole, which benefits cryptocurrency investors in the country.

In other words, Bitcoin, Ethereum, Cardano and other digital currencies, would have to submit to the same rules against abuse that apply to stocks, bonds and other securities on the market.

Losses in the crypto market are treated differently from those in stocks and mutual funds. Precisely because the so-called ‘wash sales’ rules are not applied to this market, according to the opinion of financial experts.

Wash sales rules prevent investors from manipulating the stock market. Currently, crypto investors can get two types of tax benefits after losing investment. One is to use the loss to decrease or eliminate capital gains tax on positive investments. The other is to immediately buy back the same asset that was sold, pending subsequent recovery in the price of the asset.

On The Flipside

  • This tax loophole, which benefits cryptocurrency investors, exists due to the lack of regulation in the U.S.
  • The U.S Internal Revenue Service (IRS) considers cryptocurrencies to be property, and not security. It is for this reason that crypto assets do not fall under the wash sale rule.

Unlike what happens with digital assets, shareholders cannot buy the same or similar value in a 30-day period before and after selling an asset. Otherwise, they expose themselves to sanctions by the United States Securities and Exchange Commission (SEC).

If approved as presented by the House Democrats, the rule would apply to all cryptocurrency sales after December 31st of this year.

This attempt to regulate the market isn’t being made solely in search of clear and equal rules for all types of assets and securities. It is also that the application of the clean sale rules on cryptocurrencies and other digital assets would allow the Biden administration to raise a little more than $16.8 billion over the next 10 years, according to the opinion of the Joint Tax Committee.

A New Option for Investors

This new rule is being proposed in addition to other tax reforms that Democratic lawmakers have proposed to increase revenue. The White House will make million-dollar investments aiming to curb climate change, make changes in infrastructure, and in the expansion of the social safety net, the cost of which is estimated to be $3.5 trillion.

In the case that cryptocurrencies become subject to wash sale rules, there is an option for investors. They can still place positions in another digital asset without any problems.

This is recommended by the founder of Delancey Wealth Management, Ivory Johnson. Speaking to CNBC, the financial planner said that cryptocurrencies are different from each other. So selling Bitcoin, and buying Etherum quickly afterwards is probably not a violation of the rules.

According to Johnson, “the similarities begin and end with the currencies that are exchanged on a blockchain.” It states that “using that logic, stocks traded on an exchange, NYSE or otherwise, are not considered and one and the same either.”

The expert made the analogy that “bitcoin is to ether what Gold is to Visa (NYSE:V) – they are not ‘substantially similar.'” Therefore, they should not activate the wash sale rule.

Why You Should Care?

  • The debate around cryptocurrencies, their intrinsic value as a payment instrument, their potential tax contribution and growing use, continues every day in high political circles in Washington.
  • The noise around whether or not to accept crypto assets has ceased, and the discussions now revolve around their benefits, network security and control.

EMAIL NEWSLETTER

Join to get the flipside of crypto

Upgrade your inbox and get our DailyCoin editors’ picks 1x a week delivered straight to your inbox.

[contact-form-7] You can always unsubscribe with just 1 click.

Continue reading on DailyCoin

ig right nyse right Neteller adver right
APPROVED BROKERS
Row 1 Left net_home_top Row 1 Right Row 2 Left Row 2 Center Row 2 Right Main Right TOP 07 Main Right TOP 06 Main Right TOP 05 Main Right TOP 04 Main Right TOP 03 Main Right TOP 01
28-09-2021 01:42:05 (UTC+7)

EUR/USD

1.1705

-0.0009 (-0.08%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (1)

Sell (8)

EUR/USD

1.1705

-0.0009 (-0.08%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (1)

Sell (8)

GBP/USD

1.3713

+0.0031 (+0.23%)

Summary

Sell

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (2)

Sell (6)

USD/JPY

110.96

+0.24 (+0.22%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (7)

AUD/USD

0.7290

+0.0032 (+0.43%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (6)

Sell (1)

USD/CAD

1.2619

-0.0034 (-0.26%)

Summary

Neutral

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (3)

Sell (2)

EUR/JPY

129.87

+0.17 (+0.13%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (0)

Sell (7)

EUR/CHF

1.0833

+0.0010 (+0.09%)

Summary

↑ Sell

Moving Avg:

Buy (2)

Sell (10)

Indicators:

Buy (2)

Sell (7)

Gold Futures

1,751.10

-0.60 (-0.03%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (0)

Sell (9)

Silver Futures

22.677

+0.252 (+1.12%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (1)

Sell (5)

Copper Futures

4.2847

-0.0008 (-0.02%)

Summary

Buy

Moving Avg:

Buy (6)

Sell (6)

Indicators:

Buy (6)

Sell (1)

Crude Oil WTI Futures

75.28

+1.30 (+1.76%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

Brent Oil Futures

78.49

+1.26 (+1.63%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (10)

Natural Gas Futures

5.704

+0.504 (+9.69%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (6)

Sell (0)

US Coffee C Futures

194.98

+0.63 (+0.32%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (5)

Sell (0)

Euro Stoxx 50

4,165.48

+6.97 (+0.17%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (9)

S&P 500

4,450.50

-4.98 (-0.11%)

Summary

↑ Sell

Moving Avg:

Buy (4)

Sell (8)

Indicators:

Buy (0)

Sell (10)

DAX

15,573.88

+42.13 (+0.27%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (8)

FTSE 100

7,063.40

+11.92 (+0.17%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (1)

Sell (7)

Hang Seng

24,208.78

+16.62 (+0.07%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (8)

Sell (0)

US Small Cap 2000

2,296.05

+42.17 (+1.87%)

Summary

Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (4)

Sell (4)

IBEX 35

9,002.90

+129.80 (+1.46%)

Summary

Buy

Moving Avg:

Buy (7)

Sell (5)

Indicators:

Buy (4)

Sell (2)

BASF SE NA O.N.

64.740

+1.040 (+1.63%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (1)

Sell (5)

Bayer AG NA

47.47

+0.99 (+2.13%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (9)

Sell (0)

Allianz SE VNA O.N.

196.19

+3.85 (+2.00%)

Summary

↑ Buy

Moving Avg:

Buy (12)

Sell (0)

Indicators:

Buy (6)

Sell (2)

Adidas AG

278.80

-2.77 (-0.98%)

Summary

↑ Sell

Moving Avg:

Buy (0)

Sell (12)

Indicators:

Buy (0)

Sell (10)

Deutsche Lufthansa AG

6.561

+0.328 (+5.26%)

Summary

↑ Buy

Moving Avg:

Buy (11)

Sell (1)

Indicators:

Buy (7)

Sell (2)

Siemens AG Class N

147.27

-0.84 (-0.57%)

Summary

↑ Sell

Moving Avg:

Buy (1)

Sell (11)

Indicators:

Buy (0)

Sell (10)

Deutsche Bank AG

11.120

+0.285 (+2.63%)

Summary

↑ Buy

Moving Avg:

Buy (10)

Sell (2)

Indicators:

Buy (5)

Sell (3)

 EUR/USD1.1705↑ Sell
 GBP/USD1.3713Sell
 USD/JPY110.96↑ Sell
 AUD/USD0.7290↑ Buy
 USD/CAD1.2619Neutral
 EUR/JPY129.87↑ Sell
 EUR/CHF1.0833↑ Sell
 Gold1,751.10↑ Sell
 Silver22.677↑ Sell
 Copper4.2847Buy
 Crude Oil WTI75.28↑ Sell
 Brent Oil78.49↑ Sell
 Natural Gas5.704↑ Buy
 US Coffee C194.98↑ Buy
 Euro Stoxx 504,165.48↑ Sell
 S&P 5004,450.50↑ Sell
 DAX15,573.88↑ Sell
 FTSE 1007,063.40↑ Sell
 Hang Seng24,208.78↑ Buy
 Small Cap 20002,296.05Buy
 IBEX 359,002.90Buy
 BASF64.740↑ Sell
 Bayer47.47↑ Buy
 Allianz196.19↑ Buy
 Adidas278.80↑ Sell
 Lufthansa6.561↑ Buy
 Siemens AG147.27↑ Sell
 Deutsche Bank AG11.120↑ Buy
Mua/Bán 1 chỉ SJC
# So hôm qua # Chênh TG
SJC Eximbank5,665/ 5,715
(0/ 0) # 900
SJC HCM5,635/ 5,700
(0/ 0) # 885
SJC Hanoi5,635/ 5,702
(0/ 0) # 887
SJC Danang5,635/ 5,702
(0/ 0) # 887
SJC Nhatrang5,635/ 5,702
(0/ 0) # 887
SJC Cantho5,635/ 5,702
(0/ 0) # 887
Cập nhật 28-09-2021 01:42:07
Xem lịch sử giá vàng SJC: nhấn đây!
ↀ Giá vàng thế giới
$1,750.88+1.380.08%
Live 24 hour Gold Chart
ʘ Giá bán lẻ xăng dầu
Sản phẩmVùng 1Vùng 2
RON 95-IV2204022480
RON 95-II,III2194022370
E5 RON 92-II2071021120
DO 0.05S1658016910
DO 0,001S-V1693017260
Dầu hỏa1564015950
ↂ Giá dầu thô thế giới
WTI$75.15-0.46-0.61%
Brent$78.52-0.51-0.65%
$ Tỷ giá Vietcombank
Ngoại tệMua vàoBán ra
USD22.630,0022.860,00
EUR25.993,7727.346,60
GBP30.324,2231.591,18
JPY200,45212,05
KRW16,7520,39
Cập nhật lúc 18:54:42 27/09/2021
Xem bảng tỷ giá hối đoái
binance main right Fxpro aetos main right adver main right