White House Budget Proposal: Expanding digital asset reporting requirements, overseas crypto accounts over $50,000 to be reported
The United States has seen several significant proposals in cryptocurrency regulation recently. The Biden administration's 2023 budget is set at $5.8 trillion and includes plans to expand tax reporting requirements for digital assets, with an expected revenue of billions over the next decade. The Treasury Department has also proposed that overseas crypto accounts with a value exceeding $50,000 must be reported to the Internal Revenue Service.
Table of Contents
Expanding Tax Revenue, Aiming for $10 Billion
According to the budget proposal for 2023, the White House has proposed modernizing regulations on digital assets, primarily through expanding tax reporting requirements, with an expected $11 billion in crypto tax revenue over the next decade, and nearly $5 billion in tax revenue just next year.
The proposal states that by applying "mark-to-market" accounting rules only to "active traders" between the tax years 2023 and 2032, the government could generate $6.6 billion in additional tax revenue.
The annual budget will also allocate additional funds to the Department of Justice to hire more analysts as part of the government's strategy to combat crypto ransomware and related destructive activities.
Reporting Overseas Holdings Over $50,000
In addition to the White House budget, the Treasury Department has also released details in the Green Book, emphasizing that the Financial Stability Oversight Council (FSOC) faces increasingly severe threats to financial stability and will collaborate with the Treasury Department to expand regulatory oversight in the crypto field, focusing on climate change and digital asset risks.
The proposal mandates that U.S. taxpayers report foreign financial accounts valued over $50,000. The Treasury Department stated:
Tax regulations and enforcement actions on digital assets are rapidly growing issues, given the industry's complete digitization, allowing taxpayers to engage in transactions with offshore digital exchanges and wallet service providers without leaving the United States.
Related
- Latest on Google Antitrust Case: U.S. Department of Justice demands multiple anti-monopoly measures, including sharing AI training data.
- South Korea to Open Cryptocurrency ETF! Digital Asset Committee Discusses Possibility of Spot ETF, Opening Registration for Institutional Exchange
- MiCA fermenting! Coinbase delists EU non-compliant stablecoins, what impact does the suspension of USDT have?